Kuching, Sarawak, Malaysia, based CCK Consolidated Holdings said that its newly acquired Indonesian shrimp firm has bolstered the group’s overall prawn export business. CCK, which is Sarawak’s largest integrated poultry supplier, acquired PT Bonanza Pratama Abadi (PT. BPA) for RM33.8mil (USD7.15 million) in July 2022. This acquisition boosted the group’s overall prawn export volumes to Japan, Taiwan, South Korea and Hong Kong.
PT. BPA is one of the leading shrimp processing companies based in Tarakan, North Kalimantan, Indonesia. It focusses on processing and packing of premium quality “Black Tiger†and “Black Pink†shrimps, these quality raw materials were sourced directly and timely from nearby traditional farmed ponds.
This is evident as the group prawn segment’s revenue surged by 36% in the financial year ended Dec 31, 2023 (FY23) from FY22. PT Bonanza is engaged in the processing of shrimp for local and export markets. The firm’s key products are frozen raw shrimp, frozen cooked shrimp and frozen Nobashi Ebi shrimp.
CCK group managing director Tiong Chiong Hiiung, as reproted in the Star, said that the acquisition of PT Bonanza has proven to be synergistic to CCK group’s existing seafood business and complemented its export-oriented prawn products and added size and scale to the prawn segment.
Besides the shrimp business, the group has established food manufacturing operations in Indonesia, where its factories in Pontianak, west Kalimantan and Jakarta produce in-house brands of sausages, nuggets and other processed products. To cope with the increasing demand from consumers in Pontianak, CCK made a major investment in a new manufacturing plant and logistic centre that comprises a chicken abattoir, a cold room and downline food processing of sausages, burgers and meatballs. The new facilities commissioned three years ago have significantly raised the production capacity and support higher sales volume.
CCK group’s revenue has expanded swiftly in the past two years to reach nearly the RM1bil (211 million) mark, driven mainly by the vigorous growth of the retail and prawn segments. In FY23, CCK posted a 13.3% growth in group revenue to in FY22.
“Growth was driven by more matured contributions from our established retail network, higher sales volumes from both the retail and wholesale channels,and strong demand for our in-house manufactured processed products in Indonesia.
“The overall profitability of all key segments remained encouragingly robust.The retail segment continued to experience healthy sales volumes from our expansive retail network,†CCK said in a yearly review of the group’s performance recently.
According to Tiong, expansion of the group’s retail network will continue to be carried out strategically,and that economies of scale and the efficiency of its fully integrated supply chain continues to remain a key priority and focus of the group.
“Operating in the dynamic landscape of retail, we specialise in the sale of staple everyday necessities, such as poultry products, fresh fruits and vegetables. As such, all our key business segments are linked to consumer sentiment and demand but boast a commendable resilience due to the nature of the products we offer.
“That said, the volatility of the US dollar against the Malaysian ringgit remains a concern as it leads to fluctuations in the prices of corn and soy.”
