CAB ... Mar10

CAB’s primary business is integrated poultry farming and processing, while it is also involved in the manufacturing and trading of value-added food products and marine products.

Currently, they are focusing on consolidating its current brands and products and strengthening uts marketing strategy. The company had increased its marketing staff in addition to upping its advertisement space in both local and foreign trade magazines, as well as participating in trade exhibitions.

At a later stage, it will consider venturing into fully-cooked products, and adding more variety of value-added food/seafood products.

CAB, which also owns and operates the Kyros Kebab fast-food chain, was also planning to open two new outlets in the next two years in Senai Airpport and in the northern region, with combined estimated capital expenditure (capex) of RM700,000, he said.

CAB’s restaurants and franchising business contributed 0.5% of total group revenue for the first quarter ended Dec 31, 2009 with a revenue contribution of RM767,000 from RM853,000 a year earlier.

On the group’s foray into the overseas market, sales from the Middle East, United States, Australia and Singapore were “well-maintained”, contributing 6.7% to group revenue for FY09, although it faced a decline from 11.3% contribution in FY08.

CAB’s results for the first quarter ended Dec 31, 2009 saw the marine products manufacturing segment contributed RM387,000 in revenue versus RM22.34 million a year earlier.

At present, CAB would focus on its existing foreign markets although the group would consider entering other markets in the future. For FY09, CAB’s Malaysian operations contributed 93.3% in sales revenue while its US market contributed 5.5%. Its other foreign markets contributed 1.2% of sales revenue.

CAB’s poultry division, which contributed 91.6% or RM122.76 million in group revenue for 1QFY09 from RM117.53 million in 1QFY08, would continue to be the main driver of earnings and revenue.

CAB’s net profit rose 78% to RM2.08 million in its first quarter ended Dec 31, 2009 from RM1.17 million a year earlier, while revenue fell 9.2% to RM133.99 million from RM147.50 million.