Competition, costs affecting Hup Seng earnings

PETALING JAYA: Hup Seng Industries Bhd earnings outlook for financial year 2023 (FY23) is expected to be underpinned by lower costs of items such as crude palm oil (CPO) and wheat, which are the primary raw materials used in biscuit production.

For FY22, its earnings were dragged by higher competition in the industry and rising cost of commodities, which reduced Hup Seng’s gross profit margin by minus three percentage points year-on-year (y-o-y) to 24.6% for FY22.