Lay Hong 3Q net profit up 17.4% on higher sales

During the quarter in review, the egg and poultry producer posted a revenue of RM204.56mil, up 19.6% from RM170.98mil in the previous corresponding quarter, driven by the integrated livestock farming segment. The group

KUALA LUMPUR: Lay Hong Bhd posted a 17.4% increase in net profit to RM10.11mil in the third quarter ended Dec 31, 2017 compared with RM8.61mil in the same period a year ago. 

The integrated poultry company’s revenue stood at RM228.19mil, a 33% increase as compared to RM171.68mil a year ago.

In a statement, Lay Hong said the increase in its revenue and profit for the integrated livestock farming division was mainly due to the higher quantity of and price of eggs sold, as well as processed frozen products and pasteurized liquid eggs sold in 3QFY2018. 

For the retail supermarket division, the result was attributable to the opening of 3 additional outlets in Pitas, Ranau and Tambunan.

For the first nine months to Dec 31, 2017, Lay Hong recorded a revenue of RM615.78mil, a 22% increase from RM501.61mil a year ago. Its net profit stood at RM26.7mil, two times increase from RM12.89mil in the corresponding period last year.

“The entry of NH Foods Ltd into the Company as a substantial shareholder recently has marked a major step forward for the Company’s chicken product manufacturing business in the form of new product development and market penetration,” group executive director Yap Chor How said in the statement. 

To date, a total of 11 products have been launched and the response has been encouraging. 

“Organically, the company is on track with its planned expansion to increase our production capacity to three million eggs per day from 2.3 million eggs per day, while the broiler capacity will increase progressively to two million birds per month from one million birds per month,” Yap said. 

“Besides that, our plan to expand our processed food production capacity is intact. A piece of industrial land in Selangor Halal Hub, Pulau Indah has been identified for the plant to be set up and it is expected to commence operations by 4QFY2018. This is expected to be the site for the JV with NH Foods,” he added.