May 7, 2026

 

Leong Hup rides poultry demand to higher FY2025 profit as costs ease

Southeast Asia's integrated poultry major delivers stronger earnings on tighter margins, even as currency translation and softer livestock revenues weigh on its top line.

 

Leong Hup International Bhd posted a 16.3% rise in full-year net profit to RM501 million (US$107 million) in FY2025, despite revenue slipping to RM8.82 billion (US$1.88 billion) from RM9.30 billion (US$1.98 billion) a year earlier, as sustained poultry demand and easing feed ingredient costs offset headwinds from currency translation and weaker livestock contributions.

 

Executive chairman Lau Chia Nguang said poultry remains one of the most affordable and widely consumed protein sources in the region, with growth supported by population expansion and rising disposable income. The group's strengthened farm-to-plate integrated operations enabled more effective cost management across its five markets, Malaysia, Vietnam, Singapore, Indonesia and the Philippines.

 

Feed ingredient costs improved during the year, with corn and soybean meal prices easing following stronger harvests in 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," Lau said.

 

Currency movements, however, presented a mixed picture. While a stronger ringgit lowered the cost of imported feed ingredients domestically, it created translation effects when consolidating overseas earnings. "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 the group's largest revenue contributor 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).

 

Regional economic conditions remained broadly supportive. Malaysia's economy expanded 5.2% in 2025, Indonesia grew 5.1%, and Vietnam recorded the strongest growth in Southeast Asia at 8.0%, up from 7.1% the previous year.

 

For the fourth quarter ended 31 December 2025, the group reported profit of RM179 million (US$38 million) on revenue of RM2.27 billion (US$483 million). Full-year earnings per share rose 19.5% to 14.04 sen, compared with 11.75 sen in FY2024.

 

The group also made meaningful progress on its balance sheet. Net debt fell to RM870 million (US$185 million) from RM1.22 billion (US$260 million), bringing the net gearing ratio down to 0.24 times from 0.37 times. "We continued to focus on prudent and efficient cash flow management," Lau said.

 

- The Star