According to the Zhitong Finance App, Shuangcaizhuang (02321) announced its 2023 results. Revenue increased by about 11.5% year on year to about RM932 million. Profit attributable to company owners was approximately RM27.116 million, up 1.23% year on year; basic profit per share was 2.71 cents.
According to the announcement, the increase in revenue was mainly due to an increase of about RM92.6 million in distribution revenue for third party brands. The increase in revenue from third party brands was mainly due to an increase of approximately RM113.4 million in dairy products, sauces, oils and condiments, and frozen foods. The increase was mainly due to obtaining distribution rights from existing dairy suppliers in northern Peninsular Malaysia and distribution rights from existing suppliers of sauces, oils and condiments and dairy products to retail channels in eastern Peninsular Malaysia, which will have an impact throughout 2023.
Gross margin decreased to approximately 11.8% during the reporting period, compared to approximately 13.4% in the previous year. The decrease in gross margin was due to competitive pricing strategies adopted to seize market share, rising product prices due to inflation and the company's failure to fully pass it on to customers, and the reduction in gross margin due to the acquisition of the two new distribution rights described in the previous section.