PETALING JAYA: The poultry industry is expected to continuously play a vital role in food security, particularly amid the current global uncertainties.
According to Leong Hup International Bhd
executive chairman Lau Chia Nguang, poultry remains one of the most affordable and widely consumed protein sources in the region, and its growth is mainly supported by population growth and higher disposable income.
The poultry player operates in Malaysia, Vietnam, Singapore, Indonesia and the Philippines.
Lau said in Leong Hup’s latest 2025 annual report that the group has strengthened its ‘farm-to-plate’ integrated business operations – and in doing that, managed costs more effectively while maintaining standards.
“Our key strategic initiatives include driving cost-efficiency, enhancing resource allocation, strengthening financial excellence, driving organic growth in all key markets, growing downstream operations and developing organisational capability.”
Lau added that the cost environment for feed ingredients showed improvement, as prices for corn and soybean meal eased following stronger harvests in major producing regions, including the United States, Brazil and Argentina.
“Improved crop yields helped alleviate the supply constraints, and internally, our feed mill operations continued to strengthen its procurement strategy and optimise feed formulations to enhance cost efficiency.”
However, the group was impacted by the fluctuations in foreign currency, despite the ringgit appreciating against the US dollar and other currencies in the region.
Lau explained that while the strengthened ringgit helped lower the cost of imported feed ingredients locally, it also created currency-translation effects when consolidating the financial performance of the group’s overseas operations into the ringgit.
“As a result, reported revenue and earnings from certain regional markets were impacted, particularly during the later part of the year,” he said.
Indonesia remained Leong Hup International’s biggest contributor to its top line at RM3.3bil, followed by Malaysia at RM2.3bil, Vietnam at RM1.6bil, Singapore at RM814mil and the Philippines at RM790mil.
Economic growth across the region Leong Hup International operates in was broadly resilient – Malaysia economy expanded by 5.2% last year while Indonesia recorded gross domestic product growth of 5.1%.
Vietnam achieved the strongest economic expansion in South-East Asia at 8.0%, up from 7.1%.
As for the group’s earnings, it posted a profit of RM179mil on the back of a revenue of RM2.27bil for the fourth quarter ended Dec 31, 2025.
For its financial year 2025 (FY25), its topline was lower at RM8.82bil compared to RM9.30bil in FY24, this is largely attributed to lower revenue contributions from the livestock and poultry-related products and feed mill divisions.
Its profit though was 16.3% higher at RM501mil, compared to RM428mil in FY24.
Earnings per share were higher at 19.5% at 14.04 sen, compared to 11.75 sen in FY24.
Lau added the group’s net debt dropped to RM870mil, as opposed to RM1.22bil in FY24.
“Consequently, the net gearing ratio improved to 0.24 times, compared to 0.37 times in the previous year, as we continued to focus on prudent and efficient cash flow management,” he said.
