CCK’s profits are falling, but the growth story is not over yet

[i4value]

Bursa Malaysia CCK operates four key segments - retail, poultry, prawn, and food services. Retail is the dominant revenue driver, contributing nearly twice that of poultry. Vertical integration supports cost efficiency, but raw material price fluctuations remain a risk.

While revenue has grown, profitability declined due to higher costs and the end of government subsidies for poultry. The stock price saw strong gains but has since pulled back, reflecting investor caution on margin pressures. Despite this, CCK remains in the Goldmine quadrant in the Fundamental Mapper, signaling strong fundamentals and low investment risk.



Despite near-term cost pressures, CCK has several strategic initiatives that could drive future growth:

• Retail & Indonesian Growth – Store expansions and rising demand for in-house processed products.

• Strategic Partnership of its Indonesia outfit to boost manufacturing and exports.

• Cost Management – Vertical integration helps, but feed price volatility remains a challenge.

While CCK is fundamentally strong, it must navigate cost pressures to sustain its Goldmine positioning. Retail and Indonesian expansion are key to long-term growth