Cikupa Fire Costs Drag CCK 1H26 PAT Down 48.9% To RM20.8 Million

CCK Consolidated Holdings Bhd’s profit after tax (PAT) fell 48.9% to RM20.8 million for the first half of 2026 (1H26) from RM40.7 million a year earlier, weighed down by about RM16 million in one-off expenses arising from a fire at its Cikupa manufacturing facility in Indonesia.

Revenue for 1H26 remained relatively resilient at RM513.8 million compared to RM522.4 million in 1H25.

For the second quarter, PAT plunged to RM1.3 million from RM20.5 million a year earlier, reflecting the fire-related write-offs and costs, as well as the absence of government subsidies for eggs and broilers that benefited the poultry segment in the previous year.

Quarterly revenue also slipped to RM250.7 million from RM258.4 million, mainly due to lower contributions from the prawn segment and Indonesian operations following the Cikupa fire, compounded by a weaker Indonesian rupiah against the ringgit.

The group’s Malaysian retail operations remained resilient, with revenue largely stable at RM198.6 million across its 78 retail touch points. Its poultry operations also remained profitable, supported by favourable feed costs, cost management and disciplined pricing.

In Indonesia, manufacturing revenue fell to RM42.4 million from RM55.5 million as the fire reduced production capacity. CCK said demand remained robust, with its Pontianak facility operating at full capacity.

Group Managing Director John Tiong Chiong Hiiung said the fire had a significant one-off impact on reported earnings but underlying operations remained healthy.

CCK subsequently received approximately RM3.4 million in insurance proceeds, with the final recovery still subject to assessment by the insurer.

The group expects its new Boyolali food processing facility to commence operations in the fourth quarter of FY2026, substantially expanding its Indonesian production capacity, while remaining cautiously optimistic about the financial year ahead.

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