KUALA LUMPUR (May 16): Kawan Food Bhd’s (KL:KAWAN) net profit in the first quarter ended March 31, 2024 (1QFY2024) rose 17.1% to RM9.22 million from RM7.88 million in the same quarter last year, in line with higher revenue.

Quarterly revenue improved 9.4% to RM80.64 million from RM73.70 million a year ago, mainly contributed by the local market and rising demand in the North American market, the group said in a bourse filing on Thursday.

As a result, earnings per share went up to 2.54 sen from 2.17 sen in 1QFY2023.

On a quarterly basis, the group’s net profit came in 4.1% higher than the RM8.86 million it logged in the immediate preceding quarter (4QFY2023) while revenue increased by 5.8% from RM76.2 million.

The group warned that the global economy is showing "increasing signs of recession", but noted that domestic demand and local sales should still be able to record stable growth.

"The group strives to remain competitive and seek opportunities to grow its overseas markets. The challenges of inflationary pressure on production cost remains; the group will continue to produce quality products and improve its operational resilience," it added.

Shares in Kawan Food closed one sen or 0.56% lower to RM1.79, giving the group a market capitalisation of RM650.64 million.

Over the past one year, the stock has fallen by 13.1%.