Reading $CAB / 7174 (CAB CAKARAN CORPORATION BERHAD) 1QFY2024 QR (Period ending Dec'23) and some quick pointers:
- Revenue at RM548mil - minor decrease 1.58% vs LY due to lower sales achieved by the integrated poultry division.
- Net profit at RM38.38 mil - 8.3% decline vs LY due to lower yoy gain on fair value adjustment of the Group's biological assets, coupled with higher tax expenses.
- Integrated poultry division (decreased 1.98%) due to ASP of chicks and broilers decreased by 12.66% and 5.68% respectively. However, the lower feed costs compared to the previous quarter resulted a higher PBT.
- Higher profit from operations is mainly from higher government subsidies (RM39.8mil).
- The supermarket division recorded a higher revenue of RM36.01 million, mainly due to sales generated by two newly opened outlets in the previous FY, but still loss from operations dragged down by lower margin as well as higher marketing and selling expenses.
- Even though the fast-food division achieved a higher revenue to RM0.62 million, it recorded a loss from operation of RM0.12 million. This was mainly due to the pre-operating expenses being charged out for a new outlet during the quarter.
- Revenue breakdown based on geography for the quarter:
Malaysia - 85.2%
SG - 14.4%
Others - 0.4%

General prospects and environment:
- Given the recent shortage of pork and eggs, it is anticipated that demand for chicken meat would continue to be high.
- In the upcoming quarter, the price of broiler is expected to remain stable despite downward pressure on the selling price due to oversupply of broiler.
- Feed prices has been continuing to fall in recent months.
- Removal of price controls and subsidies for chicken, effective from 1st Nov 2023, to monitor impact in next QR.

Other things to take note:
- Expected CAPEX for upgrading facilities - https://cutt.ly/ww0SMlSx
- Incorporated a new subsidiary company (50% owned), Home Mart Southern Fresh & Frozen Sdn. Bhd. (“HMSF”) in Malaysia on 13 October 2023.
- Struck off wholly-owned subsidiary, CAB Marine Resources Sdn. Bhd. (https://cutt.ly/yw0SMzxa)
- The Company had issued corporate guarantees of RM916.18 million (31 December 2022: RM875.72 million) as security to FI and suppliers for banking facilities and/ or credit terms respectively
- JV into Indonesia market still pending the other party to resolve the implementation framework.

For some background read on their previous FY: https://cutt.ly/3w0SMcKd