CCK Consolidated Holdings Bhd, the largest integrated poultry supplier in Sarawak, Malaysia, has witnessed a surge in its prawn segment’s revenue. In 2023, the segment’s revenue experienced a noteworthy increase of 36% compared to 2022, reaching MYR 109.6 million (USD 23.18 million).

Contribution from PT Bonanza Pratama Abadi

The growth in revenue can be largely attributed to the contribution from PT Bonanza Pratama Abadi, an Indonesian shrimp firm acquired by CCK for MYR 33.8 million (USD 7.15 million) in July 2022. This acquisition has played a pivotal role in enhancing the group’s prawn export volumes to key markets such as Japan, Taiwan, South Korea, and Hong Kong.

PT Bonanza Pratama Abadi is primarily engaged in shrimp processing for both local consumption and export markets. Its product portfolio includes frozen raw shrimp, frozen cooked shrimp, and frozen Nobashi Ebi shrimp.

Diversification Beyond Shrimp Business

Apart from its core shrimp business, CCK has also established food manufacturing operations in Indonesia. With factories located in Pontianak, west Kalimantan, and Jakarta, the group produces in-house brands of sausages, nuggets, and other processed products to meet the demands of consumers in the region.

To meet the increasing consumer demand, CCK made investments in new manufacturing plants and logistic centers. These facilities, commissioned three years ago, have substantially increased production capacity and supported higher sales volume, particularly in the Pontianak region.

Financial Performance and Growth Trajectory

CCK’s Indonesian operations have demonstrated formidable performance, contributing MYR 196.6 million (USD 41.63 million) to the group’s revenue in 2023, accounting for 19.8% of the total group revenue. The group’s revenue has been on a rapid upward trajectory, nearing the MYR 1 billion mark (USD 211.64 million), primarily driven by robust growth in retail and prawn segments.

In 2023, CCK reported a 13.3% growth in group revenue, reaching MYR 994.9 million (USD 210.58 million), while net profit surged by 36% to MYR 84.6 million (USD 17.91 million). This strong financial performance has propelled CCK’s share price on Bursa Malaysia to an all-time high of MYR 1.05 (USD 0.22), with a market capitalization of MYR 662.2 million (USD 140.05 million) as of March 21, 2024.

Retail Network Expansion

CCK’s retail network in Malaysia continues to expand, comprising 66 CCK Freshmart stores, three CCK Local Supermarkets, and six CCK wholesale stores, totaling 75 touchpoints by the end of 2023. Additionally, three Freshmart stores were opened for business during the year under review.