Wednesday 24 Apr 2024
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KUALA LUMPUR (Aug 22): Kawan Food Bhd’s net profit for the second quarter ended June 30, 2022 (2QFY22) rose 72.63% to RM10.84 million from RM6.28 million in the same period last year, on higher sales from local and export markets.

Earnings per share was up to 3.02 sen from 1.75 sen, the group's bourse filing on Monday (Aug 22) showed.

Quarterly revenue grew 46.04% to RM80.37 million from RM55.03 million, as recovery of shipments drove up its export sales.

The group previously saw its Pulau Indah plant experience disruption of production due to Covid-19 infections, which led to the plant’s closure.

“At the same time, price adjustment that took effect from April 1 this year showed a direct impact on the local sales segment,” the group added.

For the first six months of the year, Kawan Food’s net profit climbed 34.3% to RM19.46 million from RM14.48 million  a year earlier, as revenue increased 23.84% to RM149.04 million from RM120.36 million.

The group observed that there has been an encouraging rebound in export sales, uptrend sales in mart and grocer, as well as hotels, restaurants and cafes, as the country’s economy maintained its solid momentum, helped by the transition to the Covid-19 endemic phase.

As such, the group said it will continue to remain competitive and seek opportunities to grow its business, adding that it is poised to capitalise on suitable merger and acquisition opportunities despite the challenges of higher raw material prices.

“[We have] continuously focused on ensuring operational efficiencies and cost optimisation in our business. Adding to that, the implementation of Industry 4.0 in strategic phases has notably enhanced the production of output and manufacturing capability that brings output level to hit new heights.

“[We also] have obtained approval for the hiring of foreign workers and are in the midst of arranging for the workforce on-boarding. This will enable the company to launch more new healthier food products,” the group said.

Kawan Food’s share price finished 11 sen or 5.16% lower to RM2.02 on Monday, bringing it a market capitalsiaiton of RM726.3 million.

Edited ByS Kanagaraju
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