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New Straits Times
28-05-2025
- Business
- New Straits Times
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.
BusinessToday
27-05-2025
- Business
- BusinessToday
Kawan Food's 1Q Profit Declines By 50%, Hit By Poor Export Sales And FX Loss
Kawan Food Berhad announced its first quarter results for the financial period ended 31 March 2025 reporting a year-on-year decline in revenue, mainly due to softer demand in export markets and currency fluctuations. Nonetheless, domestic performance remained encouraging, and regional markets such as Europe and Oceania delivered steady contributions. The Group reported revenue of RM70.5 million in Q1FY25, a 12.6% decrease compared to RM80.6 million in the same quarter last year. The contraction was primarily attributed to reduced sales in the Group's major export markets, particularly North America and China, as well as an unfavourable foreign exchange environment caused by the depreciation of the US Dollar against the Malaysian Ringgit. Profit after ta stood at RM4.7 million, down from RM9.2 million in Q1FY24, largely due to reduced export sales volume and unrealised foreign exchange losses. However, underlying demand remains stable, particularly in the domestic market. Malaysia continues to be the Group's largest revenue contributor, accounting for RM44.1 million or 62.6% of total revenue. This was followed by North America at RM8.6 million (12.2%), Europe at RM8.4 million (11.8%), and the remainder contributed by other regions including the Rest of Asia, Oceania, and Africa. Malaysia recorded a 9.7% year-on-year increase in revenue, supporting steady domestic demand for convenient and quality frozen food options. Europe and Oceania also registered growth of 10.9% and 13.7% respectively, contributing to the Group's overall performance across its key regional markets. The Group expects short-term margin pressure to persist due to ongoing geopolitical tensions and rising costs but remains optimistic about the medium to long-term outlook. Strategic initiatives are underway to deepen market penetration, enhance product innovation, and strengthen supply chain resilience to better serve both domestic and export markets. Related
