Leong Hup’s quarterly showing improves

PETALING JAYA: Leong Hup International Bhd is seeing a pickup in the businesses of the countries where it operates.

As Covid-19 becomes endemic, Leong Hup, one of the largest fully integrated producers of poultry, eggs and livestock feed in SouthEast Asia, said all countries that the group operates in had resumed economic activities with minimal restrictions.

“Demand has improved but the high cost of raw materials and the attempts by governments to manage food inflation has created uncertainties for our financial performance.

“The group will remain vigilant as we navigate the challenges ahead,” it said in a filing with Bursa Malaysia yesterday.

Leong Hup’s net profit for the second quarter ended June 30, 2022 rose to Rm40.50mil from Rm30.50mil in the previous corresponding period, while revenue improved to Rm2.27bil from Rm1.85bil a year earlier.

Basic earnings per share stood at 1.11 sen versus 0.84 sen previously.

The company said revenue of the livestock and poultry segment and feedmill segment expanded by 28% and 16.4%, respectively, as it benefitted from the reopening of economies across the region.

“The increase in the livestock and poultry segment was due mainly to a higher average selling price (ASP) and sales volume of broiler chickens and eggs in Vietnam, higher ASP of eggs in Malaysia, as well as higher ASP and sales volume of broiler chickens in Indonesia and the Philippines.”

Additionally, Leong Hup said the increase in feedmill revenue was due mainly to higher ASPS and sales volume in Indonesia, Malaysia and the Philippines.

“On a geographical segmentation review, Indonesia continues to be the largest segment of the group, contributing Rm823.2mil or 36.3% to the group’s total revenue for the second quarter.

“Malaysia was the second highest at Rm581.7mil (25.6%). Vietnam contributed Rm563.9mil (24.8%) while Singapore and the Philippines contributed Rm206.8mil (9.1%) and Rm94.4mil (4.2%), respectively.”

For the six-month period ended June 30, 2022, Leong Hup’s net profit stood at Rm60.87mil compared with Rm100.83mil in the previous corresponding period, while revenue rose to Rm4.36bil from Rm3.53bil a year earlier.

Leong Hup said all countries contributed to the higher revenue.