Leong Hup falls into the red in Q3 on margin compression

KUALA LUMPUR: Leong Hup International Bhd posted a net loss of RM53.42mil in the third quarter ended Sept 30, 2021, compared to a net profit of RM22.53mil in the same quarter in the previous year.

The poultry producer said in a bourse filing that Ebitda from livestock and other poultry-related products decreased 350.6% due to the lower average selling price (ASP) of broiler chickens in Vietnam and margin compression from the general increase in input cost of feed, which could not be passed on due to weaker demand from the Covid-19 pandemic.