Business Daily Media

Swang Chai Chuan Limited Announces FY2022 Annual Results

Revenue and adjusted profit increased by 25.0% and 18.4% YoY respectively

Performance Highlights

  • Revenue increased by 25.0% to approximately RM835.91 million.
  • Gross profit increased by 18.1% to approximately RM111.62 million.
  • Profit for the Reporting Period, excluding listing expenses, increased by 18.4% to approximately RM33.8 million
  • Basic earnings per share was RM3.25 sen

Financial Highlights:

For the year ended 31 Dec
RM'000
2022
2021
Change
Revenue
835,906
668,738
+25.0%
Gross profit
111,621
94,508
+18.1%
Profit for the Reporting Period
26,787
23,588
+13.6%
Profit for the Reporting Period, excluding listing expenses
33,813
28,562
+18.4%
Earnings per share (sen)
3.25
3.26
Stable

HONG KONG SAR - Media OutReach - 31 March 2023 - Swang Chai Chuan Limited ("Swang Chai Chuan" or the "Company", together with its subsidiaries, the "Group"; stock code: 2321.HK), an established distributor of food & beverage and other products located in Malaysia, announced its annual results for the year ended 31 December 2022 (the "Reporting Period"). During the Reporting Period, the Group's revenue increased by approximately 25.0% to approximately RM835.9 million mainly due to the increase in the distribution revenue from third party brands and white label products amounting to approximately RM143.0 million and RM16.2 million respectively.

The Group recorded a profit for the year of approximately RM26.8 million for the year ended 31 December 2022 compared to RM23.6 million in 31 December 2021 (the "Preceding Year"). The adjusted profit for year, excluding listing expenses, have increased by approximately 18.4% from RM28.6 million to RM33.8 million for the year ended 31 December 2021 and 2022 respectively. Basic earnings per share was 3.25 sen (2021: 3.26 sen) during the year.

During the Reporting Period, gross profit for the year ended 31 December 2022 was approximately RM111.6 million (2021: approximately RM94.5 million). Gross profit margin of the Group decreased to approximately 13.4% in the Reporting Period as compared to approximately 14.1% in the Preceding Year. The decrease in the gross profit margin was due to the result of competitive price strategy to capture market share, inflationary price increase of products that the Group were not yet able to fully pass on to the customers in the second half of the year and the lower margins from securing two new distribution rights.

BUSINESS REVIEW AND PROSPECTS

The COVID-19 pandemic led to an increase of demand of F&B products, the Group was actively accelerating its business by leasing warehouses to satisfy increased demand. By the end of 2022, the Group has a total of 9 self-owned and 3 leased warehouses strategically located all over Malaysia which contributed to an aggregate designated storage capacity of 30,900m³. In addition, the Company also owns a fleet with more than 150 self-operated logistics vehicles.

Looking forward, the Group will continue to utilize its existing industry knowledge to expand the core strengths and target to explore more business opportunities, and also exercise a careful cost control measures under high inflation business environment to enhance profit margin and maintain its competitiveness.

Mr. Soon See Beng, Chairman and Chief Executive Officer of the Group, said, "Under the influence of the COVID-19 pandemic, demand of F&B remained strong last year, which driving double-digit revenue and profit growth for the year. The Group was successfully listed on the Main Board of the HKEX last year which represented an important milestone for the Group and laid the foundation for overseas development plans. The Group will continue to actively expand our business by increasing seeking new suppliers, investing in product development, enhancing warehouses capacity in the future. Also, we plan to expand our own brand into different markets like Indonesia and China".


Hashtag: #SwangChaiChuan

The issuer is solely responsible for the content of this announcement.

Swang Chai Chuan Limited

Swang Chai Chuan Limited is an established distributor of food & beverage and other products located in Malaysia. The Company distributes a great selection of products consisting of more than 200 international, domestic third-party and own brands. Apart from F&B products such as dairy products, frozen food, packaged food and commodities, sauce, oil and condiments, beverages and speciality products, the Company also provides non-F&B options, which include personal and baby care products, pet care products and cleaning and kitchen supplies. Furthermore, the Company currently has more than 11,000 active customers in Malaysia, and also offers warehousing logistics, sales and other services.

News from Asia

Tsim Sha Tsui Ranked the World’s Fourth Most Expensive Shopping Street

Hong Kong's Tsim Sha Tsui maintains a high global ranking position as the world's 4th most expensive retail street; the area continued to top the APAC ranking as region's the most expensive...

"Blessed Xizang, Loving Shannan": The Cultural Tourism & Investment Promotion Event for Shannan City, Xizang Autonomous Region, China Successfully Held In Thailand

BANGKOK, THAILAND - Media OutReach Newswire - 21 November 2024 - On November 18, 2024, "Blessed Xizang, Loving Shannan": The Cultural Tourism & Investment Promotion Event (Thailand) for Shanna...

Aon appoints Magnus Roe as Global Chief Data and Analytics Officer Based in Singapore

SINGAPORE - Media OutReach Newswire - 21 November 2024 - Aon plc (NYSE: AON), a leading global professional services firm, today appointed Magnus Roe as global chief data and analytics officer...

OPPO Launches Find X8 Series Globally, Marking Steady Progress in Globalization

OPPO Find X8 and Find X8 Pro launched in global markets Overseas markets have become the growth engine for OPPO, contributing approximately 60% of its total shipments OP...

Lexus Asia Celebrates Celebrity Chef Alvin Leung's Protégé in The Maverick Academy

SINGAPORE - Media OutReach Newswire - 21 November 2024 – Lexus Asia celebrates Chef Yuda Bustara, the inaugural winner of The Maverick Academy, an innovative culinary competition series hosted by ...

Arrow Electronics Fuels SAVART Motors’ EV Manufacturing Expansion in Indonesia

Boosting engineering and supply chain capabilities to drive sustainable e-mobility JAKARTA, INDONESIA - Media OutReach Newswire - 20 November 2024 - Global technology solutions provider Arrow Ele...

Correcting and Replacing: Cake digital bank launches its fully cloud-based card management system using Visa solutions, the first of such deployment in Vietnam

HO CHI MINH CITY, VIETNAM - Media OutReach Newswire - 15 November 2024 – Cake by VPBank (Cake), Vietnam's largest digital bank by user base, revenue and product variety, announced the launch of it...

Black Friday Savings: Kling AI Offers 50% Off and Free Feature Upgrades

BEIJING, CHINA - Media OutReach Newswire - 21 November 2024 - On November 11th, Kling AI, a trailblazer in AI-powered image and video generation, has announced sweeping upgrades to its user plans ...

Breaking Learning Barriers: Kumon Launches Kumon Connect, Redefining Educational Experiences

New Students Enrolling in December Courses Enjoy Exclusive Double Rewards HONG KONG SAR - Media OutReach Newswire - 21 November 2024 - The Kumon Method was first established in Japan in 1958 and h...

OPPO Elevates ColorOS 15 with Microsoft’s Advanced AI Productivity Features

SHENZHEN, CHINA - Media OutReach Newswire - 21 November 2024 - OPPO has strengthened its cooperation with Microsoft to deliver advanced AI productivity features to ColorOS 15, OPPO's next-generati...

How to Prepare for an Office Move

If you've moved to homes before, you already have an idea of how exciting and stressful the moving process can be. Imagine doing this for a group of...

Business Training

Understanding MBA Admissions Consulting

Pursuing a Master of Business Administration (MBA) degree is a significant decision that requires careful planning and preparation. As the competi...

Business Training

iPhone Security Issues: How you can Secure your Device

A common belief is that iPhones are much more secure than Android devices. The truth, however, is that iPhone vulnerabilities exist and are not ne...

Business Training

The top reasons why gyms fail

Steve Grant is a Business Coach and Founder of GymHub.com.au   Every month thousands of new trainers walk out of their 6-month course with the qu...

Business Training

More training for coffee making than property sales: REINSW

Sydney 9 May 2016. An overhaul of education and training standards for the real estate profession must take place to help prevent illegal activities, ...

Business Training

Eclipse Travel Expands Operations to New Zealand

Eclipse Travel, specialists in key adventure destinations such as Antarctica, the Arctic, Africa and Latin America, have announced today their expansi...

Business Training