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apple developer:CCK Consolidated to embark on organic expansion

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,According to CCK group managing director Tiong Chiong Hiiung, (pic) the group’s operation in Indonesia has continued to expand with the completion of a new factory and a logistics centre in Pontianak last year. KUCHING: Integrated poultry operator CCK Consolidated Holdings Bhd is embarking on an organic expansion, with the plan to set up more retail stores and another supermarket in Sarawak and Sabah. In 2021, CCK is targeting to open seven additional Fresh Mart retail stores – four in Sarawak and three in Sabah – and one more supermarket in Sarawak. “This is in line with our strategic yet conservative approach to organic expansion, ” said the company when releasing its full year financial results for 2020 recently. CCK recorded a higher group net profit of about RM36mil in FY2020 from RM33.6mil in FY2019 on the back of a marginal decline in revenue to RM657.4mil from RM659.7mil previously. The group’s business has been affected by the impacts of Covid-19 pandemic, particularly as its corporate clients, restaurant customers and other food businesses experienced sluggish or no demand during the movement restriction period. As Sarawak’s largest integrated poultry supplier, CCK group is involved in retailing and poultry farming. Its integrated supply chain consists of a feed mill, breeder farms, hatchery, broiler farms, layer farm, abattoirs and retail stores. The group currently operates 65 Fresh Mart retail stores, three of which were opened for business in the fourth quarter of 2020. Fresh dressed chicken and chicken parts accounted for about 60% of the store products, while the remaining 40% comprised of frozen products, table eggs, fresh fruits and vegetables. CCK ventured into the supermarket business under the CCK Local brand last year. Currently, there are one supermarket each operating in Kuching and Kota Kinabalu respectively. The group also has retail operations in Jakarta and Pontianak, West Kalimantan bordering Sarawak. According to CCK group managing director Tiong Chiong Hiiung, (pic) the group’s operation in Indonesia has continued to expand with the completion of a new factory and a logistics centre in Pontianak last year. The new complex comprises of a cold room, chicken abattoir and the downline food processing of sausages, burgers, meatballs and other products. In FY2020, the Indonesian operations increased its revenue contribution to CCK group to RM116.1mil from about RM106mil in FY2019. The group is also involved in the culturing and selling of tiger prawns for the local and export markets. Last week, CCK said its wholly-owned subsidiary Ableway Sdn Bhd had entered into a sale and purchase agreement with Kuching City Mall Development Sdn Bhd to acquire a three-storey shop house for RM1.3mil. The new shophouse will be used as a warehouse and office. Going forward, CCK is concerned about the current uncertainties regarding the volatility of feed prices. It noted that this might affect the cost structure of the group’s poultry segment. The rising global prices of soy and corn, the main raw materials for chicken feed, had eroded the pre-tax profit of the poultry segment, which fell by 28% in Q4 2020 from the same corresponding quarter in 2019.
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