Nth American demand for parathas amid lockdowns boosts Malaysian halal food manufacturer’s second-quarter

Malaysian halal food manufacturer Kawan posted increases in sales and profit for April, May and June as domestic and international consumers ate at home during the COVID-19 lockdowns.  

Kawan Food Berhad makes and sells frozen foods including paratha, naan, fries and wedges.

Notably, the company earned 66.5% more in revenue from North America for the three months.

Kawan headline numbers for April - June 2020 compared to same quarter last year:

• Profit increased by 220.97% to 8.82 million ringgit ($2.11 million) compared to 2.75 million ringgit. Kawan said this is mainly due to production efficiency, a stronger U.S. dollar against the ringgit, and higher sales revenue.
• Revenue grew 38.67% to 79.33 million ringgit, due to increased demand in domestic, Europe, North America, Oceania and Africa markets.
• North America revenue went up by 66.5% to 20.66 million ringgit. The region contributed 26.05% of Kawan’s consolidated revenue compared to 21.69% in the same three months last year.
• Malaysian sales grew by 52.7% to 38.75 million ringgit, making up 48.83% of total revenue compared to 44.35% last year.
• Oceania sales were also notably up, by 22.5% to 3.72 million ringgit.
• Sales to China dropped 11.8% to 3.18 million ringgit, and 4.2% to 7.52 million ringgit for the rest of Asia.

OUTLOOK FOR REST OF THE YEAR

“We are seeing the emergence of new orders and new consumption not previously seen prior to COVID-19,” said Kawan Food Berhad.

However, despite this growth, it said it is still “cautiously optimistic” in its outlook as it anticipates a rise in ready-to-eat consumption habits among the population of young working adults and millennials.

Click here for the link to Kawan Food Berhad’s statement.

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