Revenue and adjusted profit increased by 25.0% and 18.4% YoY respectivelyPerformance 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
| || 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".
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.