KUALA LUMPUR: Leong Hup International Bhd (LHI), one of Asean’s largest fully integrated producers of poultry, egg and livestock feed, posted an impressive set of financial results in the first quarter ended March 31,2021 (1Q21).
LHI’s executive director and group CEO Tan Sri Francis Lau Tuang Nguang said on Thursday the group delivered a strong set of results, with pre-tax profit up 199.6% to RM105.15mil.
It posted a record net profit of RM70.33mil, which was the strongest quarterly performance since it was listed about two years ago. Net profit was 222.8% above the RM21.79mil a year ago.
Its revenue increased by 16.9% to RM1.68bil from RM1.43bil. Earnings per share were 1.93 sen compared with 0.6 sen a year ago. It declared an interim dividend of 0.66 of a sen.
The revenue growth was underpinned by the double-digit growth in revenue from both of the group’s livestock and poultry related products segment and feedmill segment.
“With the latest set of results, the group is on course to stage a recovery on the back of solid top line growth underpinned by continuous volume expansion and vigilance in cost management.
“While Covid-19 and other exogenous factors will continue to pose uncertainty and pressure on our business, we are encouraged to see traction with the strategies undertaken since last year, ” he said.
LHI said its livestock and poultry related products segment’s revenue increased by 16.9% to RM915.16mil from RM782.63mil a year ago.
“This was driven by the recovery of average selling price (ASP) and sales volume growth of day-old-chicks and broiler chickens in Indonesia and the Philippines.
“The segment’s performance was also buoyed by stronger performance from the group’s businesses in Malaysia.
“Notably, earnings before interest, taxes, depreciation and amortisation (EBITDA) for the said segment soared by 1,461.6%to RM94.24mil during the quarter, as compared to RM6.03mil for 1Q20.
Its feedmill segment reported a 17% increase in revenue to RM758.35mil from RM648.15mil a year ago, underpinned by higher sales volume and ASP of livestock feed in Vietnam and Indonesia.
EBITDA for the feedmill segment dipped by 6.4% to RM111.75mil from RM119.44mil as margins normalised in Indonesia and Vietnam during the quarter.
LHI said Indonesia continues to be the largest segment of the group, contributing RM613.68mil (36.6%) to the group’s total revenue for the
Malaysia was the second highest at RM443.33mil or 26.4%; Vietnam RM385.10mil (23%), while Singapore and the Philippines contributed RM189.87mil (11.3%) and RM44.57mil (2.7%).
LHI also said the 1Q21 performance was stronger from the quarter ended Dec 31,2020.
The group’s revenue increased by 4.3% to RM1.67bil from RM1.61bil mainly due to an increase in average selling price and sales volume of broiler chickens in Malaysia, Indonesia and the Philippines as well as increase in average selling price of DOC in those three countries.
The group’s profit before taxation increased by 53.9% to RM105.15mil from RM68.32mil due to higher margin arising from an improvement in average selling price of DOC and broiler chickens in Indonesia and Philippine.
This was further contributed by higher sales volume and average selling price of broiler chickens in Malaysia.