Leong Hup’s 1Q net profit rises 8.7% to RM22mil

KUALA LUMPUR: Leong Hup International Bhd said the strong regional economies provide a good backdrop for higher consumption of its products.

“While the high cost of raw materials and attempts by governments to manage food inflation continues to create uncertainties for our financial performance, barring unforeseen circumstances, the group expects to achieve a satisfactory performance for financial year 2023,” the integrated poultry producer said in a filing with Bursa Malaysia.

In the first quarter ended March 31 (1Q23), Leong Hup’s net profit rose 8.7% to RM22.1mil, or earnings per share of 0.61 sen against RM20.4mil, or 0.56 sen in the same quarter last year.

Revenue grew by 5.2% to RM2.2bil from RM2.1bil last year.

Leong Hup said its revenue from sales of livestock and poultry-related products increased by 4.1% to RM1.19bil from RM1.15bil in 1Q22.

Notwithstanding the increase in total revenue of livestock and poultry-related products, earnings before interest, taxes, depreciation, and amortisation (Ebitda) decreased by 83.0%.

“The decrease was mainly due to margin compression stemming from the elevated input costs of feed as well as the low average selling price of DOC in Indonesia. In Malaysia, government subsidies on livestock of RM28.6mil recognised by the group contributed to the improved Ebitda,” Leong Hup said.

The group’s revenue from feedmill increased by 6.6% from RM931.8mil in 1Q22 to RM993.5mil in 1Q23.

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Leong Hup , poultry , feedmill , eggs


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