May 4, 2026

Poultry still one of most affordable protein sources, according to Leong Hup chairman

The poultry industry is expected to continuously play a vital role in food security, particularly amid 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, with growth mainly supported by population expansion and rising 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, enabling more effective cost management 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," he said.

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 supply constraints, and internally, our feed mill operations continued to strengthen procurement strategy and optimise feed formulations to enhance cost efficiency."

However, the group was impacted by fluctuations in foreign currency, despite the ringgit appreciating against the US dollar and other regional currencies.

Lau explained that while the stronger ringgit helped lower the cost of imported feed ingredients locally, it also created currency-translation effects when consolidating the financial performance of overseas operations into ringgit terms.

"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 RM3.3 billion (US$702 million), followed by Malaysia at RM2.3 billion (US$489 million), Vietnam at RM1.6 billion (US$340 million), Singapore at RM814 million (US$173 million) and the Philippines at RM790 million (US$168 million).

- The Star

 

Economic growth across the region where the group operates remained broadly resilient. Malaysia's 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 (US$38mil) on the back of revenue of RM2.27bil (US$483mil) for the fourth quarter ended Dec 31, 2025.

 

For its financial year 2025 (FY25), its topline was lower at RM8.82bil (US$1.88bil) compared to RM9.30bil (US$1.98bil) in FY24, largely attributed to lower revenue contributions from livestock and poultry-related products and feed mill divisions.

 

Its profit, however, was 16.3% higher at RM501mil (US$107mil), compared to RM428mil (US$91mil) in FY24.

 

Earnings per share rose 19.5% to 14.04 sen, compared to 11.75 sen in FY24.

 

Lau added that the group's net debt dropped to RM870mil (US$185mil), compared with RM1.22bil (US$260mil) in FY24.

 

"Consequently, the net gearing ratio improved to 0.24 times from 0.37 times in the previous year, as we continued to focus on prudent and efficient cash flow management," he said.