Kawan Food posts lower Q1 profit on export slowdown, eyes domestic-led recovery
KUALA LUMPUR: Kawan Food Bhd's latest quarterly results reflect the impact of global market volatility and ongoing geopolitical tensions, according to its chairman emeritus and acting group managing director, Gan Thiam Chai.
For the first quarter ended March 31, 2025 (Q1 FY25), the group posted a net profit of RM4.7 million — down 48.5 per cent from RM9.2 million in the same quarter last year — due to lower export volumes and unrealised foreign exchange losses.
Revenue also fell 12.6 per cent year-on-year to RM70.5 million from RM80.6 million, dragged by softer sales in key export markets including North America and China.
Despite the challenges, Gan said domestic sales remained resilient, with stable contributions from Europe and Oceania.
"Our business fundamentals remain intact, and we are focused on adapting to market conditions and ensuring operational stability," he added.
Looking ahead, Kawan Food expects growth to be supported by sustained domestic demand for its frozen convenience foods, while it continues expanding internationally through innovation, targeted marketing, and improved distribution.
To strengthen operations, the group has allocated RM3.3 million in capital expenditure for property, plant, and equipment, aimed at boosting supply chain resilience and manufacturing capacity.
Shares of Kawan Food have been on a downward trend for nearly two years, falling from RM2.30 in January 2023 to RM1.29 on Wednesday, giving it a market capitalisation of RM469.61 million.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
7 hours ago
- The Star
Kawan Food's revenue forecast to remain stable
PETALING JAYA: BIMB Research expects Kawan Food Bhd 's revenue to remain stable over the long-term with growth likely to be driven by strong demand for convenient, high-quality frozen food, particularly in key international markets. This will be supported by ongoing product innovation and improved distribution efforts, the research house said in a note to clients. Meanwhile, the group will continue to focus on strengthening its supply-chain resilience and broadening its product offerings. Despite short-term external headwinds, demand remains healthy, as reflected in the group's steady revenue from Malaysia and key export markets, the research house said. However, BIMB Research added that Kawan Food remains cautious given ongoing global volatility from geopolitical tensions and currency fluctuations. On the group's results for the first quarter of this year (1Q25) , the research house said Kawan Food's earnings came below its expectations, with core profit after tax and minority interest of RM4.3mil, which accounts for only 11% of the full-year forecast. Revenue declined by 12.6% year-on-year to RM70.5mil, primarily due to softer demand from export markets with Europe down 25.2% and North America down 52.8%. As a result BIMB Research cut Kawan Food's FY25 and FY26 earnings assumption by 13% and 8% to RM34.4il and RM41.3mil, respectively, to account lower revenue from the export market. It maintained a 'buy' call on the stock with a lower target price of RM1.70 from RM2 earlier.
The Star
2 days ago
- The Star
German firm's Senai manufacturing facility a boost to state's industrial landscape
(From second left) Gan, Suresh Kumar, SICK supervisory board member Sebastian Glaser (sixth from left) and Lee (fifth from right) at the groundbreaking ceremony of SICK Malaysia's new factory. A GERMAN manufacturer has identified Johor's Senai Airport City for its operations, marking another milestone in the integrated development as a regional industrial hub. SICK Malaysia managing director Suresh Kumar Somasundram said the group manufactured sensor-based industrial automation solutions and the new factory would strengthen its supply chain and operational efficiency. 'The facility is designed to enhance production capabilities, improve operational efficiency and support sustainable growth in the Asia-Pacific region. 'With its strategic location in Senai Airport City, Johor, which is close to our key markets, the new factory will play an important role in SICK's long-term success,' he said in a statement. The groundbreaking ceremony of the manufacturing facility was attended by Johor investment, trade, consumer affairs and human resources committee chairman Lee Ting Han. In his speech, Lee said the project was more than just an expansion for SICK, but a transformation of Johor's industrial landscape. 'This ceremony reinforces Johor's standing as a preferred destination for high-value, innovation-driven industries. 'It also demonstrates the potential for international companies to grow alongside our local communities,' Lee said. He said phase one of the project, scheduled for completion next year, would see investments totalling RM280mil. 'By the final phase five, likely before 2045, total investment is expected to reach RM1bil. 'The total investment by SICK is projected to generate up to 2,500 jobs,' he said. Senai Airport City chief executive officer Gan Seng Keong said that the master-planned industrial development spanning over 1,099ha continued to attract global companies seeking strategic positioning in South-East Asia. 'The decision by a global leader like SICK to establish its advanced manufacturing hub here is a strong endorsement of our infrastructure readiness, world-class connectivity and strategic location. 'With 85% of our Free Zone land occupied, our expansion of the Free Zone from 161ha to 263ha further underscores its strategic importance,' he said, adding that this would enhance competitiveness and reinforce its contribution to Johor-Singapore Special Economic Zone (JS-SEZ).
The Sun
4 days ago
- The Sun
Southern Score posts best-ever 9M earnings, eyes Bursa main market transfer
KUALA LUMPUR: Southern Score Builders Bhd, a construction management specialist for high-rise residential buildings and civil infrastructure, posted a revenue of RM59.8 million for the third quarter (Q3) ended March 31, 2025 (FY25), surging 52.1% from RM39.4 million posted in Q3 FY24. Net profit also grew by 39.4% year-on-year (YoY) to RM10.0 million, up from RM7.2 million in Q3 FY24. For the nine-month (9M) of FY25, Southern Score recorded a revenue of RM140.0 million, representing a YoY increase of RM32.9 million or 30.7% from RM107.1 million in the 9M FY24. The double-digit growth was driven mainly by the group's mechanical and electrical (M&E) arm, SJEE Engineering Sdn Bhd's (SJEE) maiden contribution as well as higher revenue from turnkey construction services following the commencement of the Platinum Melati Residences project. At the bottom line, net profit jumped 53.8% YoY to RM28.6 million, up from RM18.6 million in 9M FY24. The growth was attributed to cost savings from the main building work projects of Vista Harmoni Sentul Residences and PV 22 Residences. Notably, this marks Southern Score's highest-ever net profit for a nine-month period. Executive director and CEO Gan Yee Hin said the company delivered its best-ever nine-month bottom-line performance. 'This was partly driven by the maiden contribution from our M&E arm — a clear indication that our investment is already yielding results. 'Looking ahead, we continue to be upbeat on the prospects as we see vast opportunities for both our construction and M&E divisions,' he said. Gan also noted that the Department of Statistics Malaysia reported that the value of work done in the construction sector continued its upward trend, recording a moderate increase of 16.6% to RM42.9 billion in the first quarter of 2025. Meanwhile, the Malaysian data centre market is projected by Arizton Advisory & Intelligence to reach US$13.6 billion by 2030 from US$4.0 billion in 2024. On top of that, the Johor-Singapore Special Economic Zone (JS-SEZ) opens up new opportunities for us as it is attracting interest from multinational corporations, particularly in the medical, pharmaceutical, and artificial intelligence (AI) sectors, which are exploring potential investments in the area. 'These positive developments bode well for the group, and with our technical expertise and proven track record, we are well-positioned to seize the opportunities ahead,' Gan said. To recap, SJEE had in April 2025 secured a RM51.4 million M&E contract for a data centre project at Elmina Business Park, Selangor. 'This boosted the order book of our M&E arm to RM105.7 million, while the order book for the construction segment stands at RM1.3 billion as of end-April 2025. 'This gives us clear earnings visibility in the coming years,' said Gan. On the corporate front, Gan said the group had proposed in March 2025 to undertake the transfer of the listing and quotation for Southern Score's entire issued share capital from the ACE Market to the Main Market of Bursa Malaysia. 'The transfer represents another major milestone for everyone at SSBB. We believe this exercise will enhance the group's corporate profile, credibility, and reputation, while according Southern Score a greater recognition and following amongst institutional investors. 'Besides, the transfer would boost the confidence of all our stakeholders and better reflect our group's current scale of operations,' said Gan. Southern Score board expects the transfer to be completed within the second half of 2025, barring any unforeseen circumstances and subject to all required approvals being obtained. Gan said the group had proposed in March 2025 to undertake the transfer of the listing and quotation for Southern Score's entire issued share capital from the ACE Market to the Main Market of Bursa Malaysia.
