KUALA LUMPUR (Aug 27): CCK Consolidated Holdings Bhd (KL:CCK) said its second quarter net profit rose 18% to RM19.77 million from RM16.76 million a year ago, thanks to a better performance by its poultry segment.

Revenue for the quarter ended June 30, 2024 (2QFY2024) increased 9.9% to RM271.57 million from RM247.11 million previously, underpinned by better performances from its retail, poultry and prawn segments, which was offset by a decline in the food service segment, according to the group's bourse filing.

The retail segment’s profit before tax (PBT) grew 2.3% year-on-year while revenue increased 9.0% to RM143.5 million, bolstered by mature contributions from established retail network and improved consumer demand.

The poultry segment posted a six-fold increase in PBT to RM3.91 million as revenue rose 18.3% to RM95.8 million, driven by rising demand from institutional clients and its own retail stores.

The prawn segment saw a 17.1% increase in PBT to RM3.13 million, while revenue rose 8.8% to RM28.8 million, supported by export sales and internal retail channels.

The food service segment’s PBT, however, fell 65% to RM376,000 while revenue fell 13.1% to RM5.6 million, which CCK Consolidated attributed to lower sales volume from government schools in Sarawak.

No dividend was declared during the quarter.

For the first half of FY2024, the group’s net profit grew 25% year-on-year to RM41.14 million, while revenue rose 9.1% to RM532.29 million, driven by effective cost controls and strategic alignment of the product mix.

As of June 2024, the group’s retail network consisted of 74 stores throughout East Malaysia.

In a separate statement, CCK Consolidated managing director John Tiong Chiong Hiiung said the group’s network of urban and rural stores has enabled it to meet diverse consumer needs on essential staples and deliver consistent growth across its key segments.

The group said it is confident on its outlook given the continued expansion of its retail network, along with growth opportunities in markets like Indonesia for its in-house products.

Shares in CCK Consolidated closed up three sen or 1.7% at RM1.77, giving the group a market capitalisation of RM1.12 billion. The stock is up 120% year-to-date.