KUCHING: CCK Consolidated Holdings Bhd (CCK), which is involved in poultry farming and retail business, is still on an expansion mode.
According to group managing director Tiong Chiong Hiiung, CCK plans to expand its retail network in Sarawak and Sabah by opening up to six stores in 2019.
Last year, the group set up three new outlets – Malihah and Roban in Sarawak and Sandakan in Sabah.
He said to support the retail segment’s plan, the group would also be expanding its broiler farms in both Sarawak and Sabah.
Since opening its first retail store in Sibu in 1970, CCK group now owns and operates a network of 57 stores in Sarawak and Sabah.
Last year, the group constructed a new breeder farm in Lundu, installed a nugget line in its factory in Jakarta and carried out extension of its Kuching chicken abattoir. The group’s wholesale department in Betong was integrated with the retail store to improve operational and financial efficiencies.
CCK’s fully integrated supply chain consists of feed mill, breeder farms, hatchery, broiler farms, a layer farm, abattoirs and retail stores. Besides Jakarta, the group has business operations in Pontianak in west Kalimantan.
“We will continue revamping our existing (retail) outlets by providing comfortable shopping environment and increasing the variety of fruits, vegetables, small packs of meat and chicken for the convenience of our customers.
“The focus is to make CCK outlets the choice of shopping locations for households’ daily meal requirements,” Tiong said in the company’s 2018 annual report.
He said the group’s Indonesia operations did well in 2018, and is expected to continue its uptrend this year.
In financial year ended Dec 31, 2018 (FY2018), the Indonesian operations generated revenue of about RM124.8 million, which was an increase of 12.8 percent from RM110.6 million in FY2017.
“The strength of our Indonesian subsidiary is in the production of value-added products, i.e. sausages and nuggets,” he added.
The new nugget line helps to increase the range of items produced by the factory, thereby offering a wider choice for its customers.
CCK recorded higher group revenue of RM639.5 million in FY2018 against RM615.8 million in FY2017 or an increase of 3.85 percent. However, group’s pre-tax profit declined by 12.7 percent to RM34.4 million from RM39.4 million year-on-year.
CCK’s share of results in associate company Gold Coin Sarawak Sdn Bhd fell by 11.48 percent to RM4.1 million in FY2018 from RM4.63 million in FY2017.
Tiong attributed the lower profit to weaker ringgit versus US dollar in 2018, which increased the prices of feed and imported frozen products as shown by increasing costs of sales and lower gross profit.
In October 2018, CCK ventured into the food and beverage industry with the opening of its maiden F&B outlet, Hawker Times, here.
