NST Business
KUALA LUMPUR: Poultry-based Leong Hup International Bhd’s net profit eased 9.5 per cent to RM29.53 million in the fourth quarter ended December 31 2019 from RM32.63 million net profit a year ago.
Leong Hup, which is one of the largest fully integrated producers of poultry, egg and livestock feed in Southeast Asia, said group revenue had dropped slightly to RM1.54 billion from RM1.55 billion.
The company said this was affected by its livestock and poultry related products segment, whose revenue decreased 3.7 per cent to RM874.53 million, from RM907.79 million a year ago.
This was mainly due to lower average selling price (ASP) and sales volume of day-old-chicks, as well as softer ASP of eggs and broiler chickens in Malaysia, it said in a statement today.
Executive director and group chief executive officer Tan Sri Lau Tuang Nguang said its earnings was under pressure due mainly to the lower poultry prices in Malaysia.
Despite this, expansion in the feedmill segment remained robust while overall group sales volume for broiler chickens, eggs and livestock feed continued to record positive growth, he added.
“Notably, Vietnam and the Philippines continue to deliver strong financial performance, and this underlines the strength of our geographical diversification.
“Our steadfast focus remains on our cost optimisation agenda. As we ramp up production in our feedmills, we expect the higher utilisation rate as well as lower average cost to be accretive to our bottom line,” Lau added.
For the full-year under review, Leong Hup posted another record revenue of RM6.05 billion, an increase of 5.4 per cent from RM5.75 billion recorded in the preceding year.
“We remain broadly positive on the outlook of the group, backed by continually rising demand for poultry meat and improving income levels in the region’s fastest-growing economies where we are present,” Lau said.