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23 Oct 2025

CAB Cakaran to triple retail outlets and expand feed operations

The poultry and retail group will invest USD 22 million and acquire Cargill’s feed business to boost integration and growth.

CAB Cakaran Corp, a leading integrated poultry and retail group in Malaysia, plans to invest USD 22 million over five years to expand its supermarket network.

The company aims to grow from 25 to 100 outlets nationwide, significantly boosting its retail presence and distribution capacity for poultry and consumer goods.

New stores and fast-food growth

The new stores—under Pasaraya Jaya Gading and Home Mart Fresh & Frozen—will open across Penang, Kelantan, Kedah, Perak, and Pahang. This expansion will strengthen the group’s distribution network for its poultry products.

CAB also intends to scale up its Kyros Kebab fast-food chain following a rebranding exercise last year.

“Our strategy is to build a broad retail footprint as one of the main distribution channels for our products,” said Group Managing Director Chris Chuah.

He added that more Kyros Kebab outlets are planned in the coming years. Currently, CAB operates 19 retail stores and six Kyros Kebab restaurants across Selangor, Kuala Lumpur, and Negeri Sembilan.

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The group has steadily improved its balance sheet, reducing net gearing to 0.1 times by June 2025 from 1 time in 2021.

Cargill deal strengthens poultry integration

The retail expansion complements CAB’s move to acquire Cargill Feed Sdn Bhd’s Malaysian feedmill operations for USD 51 million. Mr Chuah described the deal as offering “strong synergies and long-term value creation” for the group’s integrated poultry business.

Cargill’s feed plants in Westport, Butterworth, Melaka, and Sabah are strategically located near ports. The acquisition will allow CAB to secure a cost-effective feed supply without acquiring new land for mills, reducing logistics expenses and enhancing control over input costs.

“With more than 10 breeder farms and over 100 broiler farms in West Malaysia, this acquisition ensures feed security and supports our long-term efficiency,” Mr Chuah noted.

He added that the deal would also open access to Cargill’s existing client base, creating opportunities for market expansion and cross-selling.

Steady earnings and market resilience

CAB’s net profit rose 7.5% year-on-year to USD 15.7 million for the nine months ending June 30, 2025, on revenues of USD 386 million, up 2.4% from the previous year.

Shares of CAB Cakaran are trading at their highest since 2018, supported by strong poultry performance after a record-setting 2023.

Mr Chuah expects Malaysia’s poultry sector to remain resilient, driven by population growth, urbanization, and sustained demand for affordable protein.

“While broiler prices may soften temporarily, they are expected to rebound in the near term as consumption continues to rise,” he said.


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