KUALA LUMPUR (Nov 22): Kawan Food Bhd’s net profit in the third quarter ended Sept 30, 2023 (3QFY2023) fell by 26.07% to RM7.67 million compared to RM10.40 million in the same period last year, largely due to higher selling and distribution costs.

As a result, earnings per share declined to 2.15 sen, from 2.89 sen in 3QFY2022, the group said in its filing.

The group’s quarterly revenue, however, rose by 10.28% to RM79.22 million from RM71.83 million, mainly contributed from the local market and rising demand in the North America/Asia market.

For the nine-month period ended on Sept 30 (9MFY2023), Kawan Food’s net profit dropped by 28.73% to RM21.27 million from RM29.85 million a year ago.

Revenue, on the other hand, rose marginally by 2.22% to RM225.77 million from RM220.88 million.

On a quarterly basis, the group’s net profit came in higher from RM5.70 million in the immediate preceding quarter (2QFY2023) while revenue increased by 17.44% from RM67.45 million.

“Despite the challenges of inflationary pressure on production, the group will continue to produce quality products whilst improving the sustainability of its business,” it said.

Shares in Kawan Food closed two sen or 1.07% lower to RM1.85, giving the group a market capitalisation of RM670.78 million.

Since the beginning of the year, the stock has fallen by 16.29%.