KUALA LUMPUR (Feb 24): Kawan Food Bhd (KL:KAWAN) reported its highest ever quarterly net profit, largely helped by foreign exchange (forex) gain.

Its net profit for the fourth quarter ended Dec 31, 2024 (4QFY2024) increased 48.1% to RM13.12 million, from RM8.86 million a year ago, as the frozen food manufacturer booked a forex gain of RM7.67 million.

During the quarter under review, the group’s revenue increased 8.4% to RM81.99 million from RM75.64 million in 4QFY2023, mainly contributed by the export markets, with rising demand in Europe and North America.

It declared a final dividend of two sen per share — payable on March 27 — bringing its total dividend for the financial year ended Dec 31, 2024 (FY2024) to nine sen per share, versus 3.6 sen for FY2023.

In FY2024, Kawan Food’s net profit increased 5.3% to RM31.71 million from RM30.13 million a year ago, while total revenue increased 10.6% to RM317.55 million from RM287.22 million.

Commenting on its prospects, the group noted that following the softening of domestic consumer demand in the second half of 2024, it hopes that the government's continuation of structural reforms will accelerate a recovery.

“Fiscal policies and reform initiatives are expected to promote consumer spending [which is] favourable to businesses, [and will] create investment opportunities and stimulate trade performance by the second half of 2025,” it said.

Despite the recent heightened geopolitical tensions and global economic uncertainties, the group said its business outlook remains positive.

“We will remain vigilant to the wider geopolitical-economic movements and strive to adapt to market shifts and continually strengthen our competitiveness in our domestic and export markets,” it added.

Shares of Kawan Food have been on a downward trend for nearly two years, falling from RM2.30 to RM1.55 on Monday, giving it a market capitalisation of RM564.26 million.