Leong Hup to sell more ready-to-eat products
SINGAPORE: Malaysia-based poultry company Leong Hup International Bhd is planning to sell more ready-to-eat products here.
Leong Hup’s subsidiary, Leong Hup Singapore Ptd Ltd (LHS), said it was in talks with major convenience stores to introduce new products.
LHS chief executive officer Lau Joo Hwa said four of its ready-to-eat products were being sold at 7-Eleven stores and the company aimed to introduce several new products this year.
“We are in discussions with other convenience stores (in Singapore) to grow this segment.”
The Singapore operations, which contributed about 17 per cent of the group’s total revenue in its financial year 2018, is focusing on its downstream business — supplying fresh chicken to food and beverage stores, manufacturing chicken sausages and ham, trading of frozen chicken, chicken parts, beef and lamb, and supplying ready-to-eat as well as ready-to-cook products.
“LHS operates four slaughtering plants and our market share of Singapore’s fresh chicken stands at about 50 per cent. Our customers include KFC, Nandos, Jollibee and Texas Chicken.
“Our factories here produce 60,000 to 70,000 fresh chicken daily (except Sunday) and the number doubles during festive seasons.”
Leong Hup, which recently relisted on the Main Market of Bursa Malaysia, operates feedmill, egg production and livestock businesses in Malaysia, Indonesia Singapore, Vietnam and the Philippines.
In the first quarter ended March 31, Leong Hup net profit rose 15 per cent to RM60.58 million versus RM52.68 million a year ago, on the back of a higher sales volume and an increase in the selling price of eggs in Malaysia and broiler chicks in Indonesia. Revenue expanded 11.2 per cent to RM1.51 billion from RM1.35 billion previously.
The group’s main revenue comes from its Malaysian and Indonesian operations, contributing 28.9 and 33.2 per cent, respectively.