July 7, 2020
Leong Hup International reports Q1 lower net profit
Malaysia-based regional poultry producer Leong Hup International recorded a lower Q1 net profit because of reduced sales and low average selling price (ASP) of poultry products in Southeast Asia, Bernama Malaysia reported.
Leong Hup International's Q1 net profit was MYR 21.78 million(~US$5.09 million; MYR 1 = US$0.23) ended March 31, a reduction from MYR 60.58 million (~US$14.16 million) in the same quarter in 2019. The company's revenue also went down from MYR 1.51 billion(~US$353 million) to MYR 1.43 billion (~US$334 million), a 4.8% drop.
Leong Hup said the drop in revenue was because of decreased livestock feed sales and reduced ASP of eggs in Malaysia, declining ASP of day-old chicks and lower livestock feed volume in Indonesia, and falling ASP of broiler chickens in Vietnam.
Tan Sri Lau TuangNguang, Leong Hup International's executive director and group chief executive officer said the company projects a RM500 million annual revenue growth for its newly acquired The Baker's Cottage company by 2024.
The Baker's Cottage is a food manufacturer and distributor acquired on June 1 for RM17.94 million, which provides Leong Hup International with a new revenue stream for its poultry products.
- Bernama Malaysia