Rising wheat, CPO prices a challenge for Hup Seng

Hup Seng is one of the leading crackers and biscuits manufacturers in the country.

PETALING JAYA: The rising raw material costs is the greatest challenge for Hup Seng Industries Bhd currently. TA Securities Research said that some of the group’s raw material prices have accelerated to a new high this month, in particular the prices of wheat and crude palm oil (CPO) which are 8% and 32% higher compared with the financial year 2021 (FY21).

The group has progressively increased the selling prices of its products to all domestic outlets to partially mitigate the pressure from high input costs, said the research house in its latest report. Based on its checks, the research house said the retail price of Hup Seng cream crackers (428g) has increased by about 10% to RM4.95. It also believed that it is difficult for the group to fully pass-through the cost increase.