KUALA LUMPUR: Lay Hong Bhd
expects to remain profitable due to its diversification strategy although the poultry industry will remain challenging due to the ongoing importation of frozen chicken into the domestic market.
In a filing with Bursa Malaysia, the group noted that the cost of feed has decreased but it continues to see the effect of the ringgit's weakening against the US dollar.
However, it said it is upbeat on its diversification into further processing and liquid eggs production.
The group said its downstream activities currently contributed 34% of its revenue compared to 25% in the previous year.
"Going forward, with the recent acquisition of the remaining 51% of the shares in Nutriplus Food Manufacturing Sdn Bhd (formerly known as NHF Manufacturing (M) Sdn Bhd), the group is expected to achieve greater efficiency in food manufacturing through production integration," it said.
In the third quarter ended Dec 31, 2023, Lay Hong recorded a net profit of RM54.91mil, which was a leap higher from RM6.96mil in the year-ago quarter, leading to a higher earnings per share of 7.42 sen as compared to 0.94 sen in 3QFY23.
Revenue was RM266.7mil in 3QFY24, little changed from RM267.16mil in the previous correspoding quarter.
Over the nine-month period, the net profit was RM62.95mil, up from RM14.95mil in 9MFY23 while revenue was RM768.73mil against RM800.47mil in the year-ago period.
