Financial And Operations Review
The year in review witnessed an increase in Malaysia’s domestic demand in the first half of 2011, which was mainly supported by a sustained growth in private consumption. The increase in demand fueled an increase in supply thus prompting an increase in the Consumer Price Index of 3.3% in the 2nd quarter of 2011. In particular, the food industry witnessed unmatched supply and demand forces caused by higher commodity prices resulting from low harvests and higher demands in developed countries.
Despite the difficult and uncertain economic environment, we are proud to announce that the Group achieved new highs in revenue and pre-tax profit for the seventh consecutive year. The Group’s revenue increased by 5.88% (2010 : 8.26%) from RM355.72 million in 2010 to RM376.65 million in 2011. Pre-tax profit for the Group was RM25.15 million, an increase of 7.22% as compared to RM23.46 million in 2010.
Other notable financial figures are:
• The Group’s net earning per share rose to 11.38 sen for the year under review as compared to 9.57 sen achieved in the previous financial year;
• The Group’s net assets per share stood at 87 sen as compared to 78 sen recorded in last financial year; and
• Shareholders’ funds improved by 7.10% to RM166.12 million from RM155.1 million as at 30 June 2010.
During the financial year under review, the Group’s retail segment saw three (3) new stores opened in the Kuching area. With this, the retail segment’s contribution to overall revenue increased to 68% from 65% achieved in the previous financial year.
In Sabah, our poultry segment contributed to the Group’s revenue with the commencement of operations of their breeder houses.
Dividend
The Board has recommended a final single-tier dividend of 3.5 sen per share in respect of the financial year ended 30 June 2011, for the approval of the shareholders at the forthcoming Annual General Meeting.
Corporate Social Responsibility
CCK Consolidated Holdings Berhad and its Group of Companies are aware that it is our corporate social responsibility to ensure that we conduct our business in a professional, ethical and socially responsible manner. We also recognise our responsibility to our employees, business associates and community within which we conduct our business as well as caring for the environment we operate in.
We recognize that our employees are an essential asset to the Group. As such, the occupational safety of all of employees is paramount. Hence, the Group strives to comply with all the standards on health and safety of the Department of Safety and Health Malaysia (“DOSH”). Various training programmes and equipment have been provided to the employees to ensure a safe working environment. In addition, as part of the Group’s responsibility towards safeguarding our employees’ health and also to comply with the Ministry of Health’s directives, we provided certain sectors of our staff with free anti-typhoid vaccinations.
The Group is committed to protecting the environment. In this regard, we continuously monitor and maintain our waste water treatment system to ensure that the discharged water from the Group’s processing plant complies with the requirements of the Environmental Quality Act 1974.
In recognition of its corporate social responsibility, the Group has also from time to time donated cash and sponsored company products to various organisations and schools for their community welfare activities.
Propects
With the implementation of the Economic Transformation Programme and various other government policy measures, the Malaysian economy is expected to continue to expand. Competition amongst food service providers is increasing and customers are becoming more discerning in their choices.
In this challenging environment, the Group’s prospects are positive. We are looking into opening new markets in Jakarta and Pontianak. We will also continue our expansion in Sabah with the building of a new logistics centre to support the poultry’s segments expansion in that state.
Appreciation
I would like to record my sincere appreciation to my fellow Directors on the Board for their continue support. I would also like to convey my gratitude to the management team and employees for their unwavering loyalty, dedication, hard work and commitment in making this another successful year for the Group.
Finally, our gratitude is also extended to our customers, suppliers, bankers, advisors and various government authorities for their continued support and confidence in our Group.
DATUK TIONG SU KOUK
Chairman