KUALA LUMPUR (Nov 29): Lay Hong Bhd posted a net profit of RM4.28 million or 0.58 sen per share for the second quarter ended Sept 30, 2022 (2QFY2023), versus a net loss of RM8.65 million or 1.31 sen per share a year earlier, on the back of a higher revenue.

Quarterly revenue rose 10.27% to RM266.91 million from RM242.05 million, lifted by food manufacturing and retail business segments, the egg producer said in a filing with Bursa Malaysia.

The group's food manufacturing segment, its largest revenue contributor, saw its revenue rise 66.09% to RM170.55 million, from RM102.69 million in 2QFY2022, amid an increase in sales quantity and price adjustments.

Revenue for the retail business rose 4.63% to RM61.69 million, from RM58.96 million, due to price adjustments to reflect the current inflation trend.

The integrated livestock farming segment's revenue contracted 4.11% to RM168.59 million, from RM175.81 million a year before, dragged by the lower average selling prices of poultry products.

Lay Hong did not declare a dividend for the quarter.

For the cumulative first half ended Sept 30, 2022 (1HFY2023), the group registered a net profit of RM7.99 million or 1.08 sen per share, compared with a net loss of RM23 million or 3.48 sen per share in the previous corresponding period.

1HFY2023 revenue increased 13.11% to RM533.31 million from RM471.48 million.

Moving forward, Lay Hong said the group's integrated farming segment continued to be pressured by the rising cost of feed and the weakening of the ringgit.

"The ceiling prices imposed on poultry products were extended and are currently in the 10th month of implementation. The government has assured the industry players that blanket subsidies will continue until the end of the year. Such assistance is good but insufficient to compensate for the gap between the cost of production and ceiling prices.

"With such an unfavourable scenario, the group finds it challenging to contain the input costs," it added.

Lay Hong's share price settled 1.5 sen or 6.25% higher at 25.5 sen on Tuesday (Nov 29), giving the group a market capitalisation of RM189 million.