Kawan Food’s profit rose 35% with higher sales in 3Q22

The group will be increasing their production capacity as they have obtain the approval for the hiring of foreign workers

by AKMAR ANNUAR / pic source: kawanfood.com

KAWAN Food Bhd’s net profit for the third quarter ended Sept 30, 2022 (3Q22), rose 35% year-on-year (YoY) to RM10.4 million from RM7.7 million, mainly driven by higher sales in 3Q22.

In an exchange filing yesterday, the exporter and manufacturer of frozen Asian food delicacies said revenue for the quarter rose 12.2% to RM71.8 million from RM64 million earlier.

There were higher sales in 3Q22 compared to the corresponding quarter in the preceding year, mainly due to the easing of the bottleneck in container shipment.

Earnings per share was 2.89 sen against 2.15 sen previously.

It declared an interim dividend of three sen per share, to be paid on Dec 30, 2022.

Reviewing its performance, the group said in the filing that they have observed an encouraging rebound in export sales, despite soft local market sentiment, as the Malaysian economy is keeping its solid momentum, assisted by the transition to the endemic phase of Covid-19.

“The group will continue to remain competitive and seek opportunities to grow its business despite challenges in production costs, focusing on operational efficiencies and cost optimisation with the implementation of IR4.0 in strategic phases,” it added.

Furthermore, it has obtained approval for the hiring of foreign workers and is arranging for the workforce on-boarding which will enable the group to increase production capacity.

The group’s share rose 0.02% to 2.3 sen at close yesterday, bringing its market capitalisation to RM818.5 million.