KUALA LUMPUR (Aug 24): Leong Hup International Bhd’s second quarter net profit surged 87.5% to RM30.5 million, from RM16.27 million a year prior, due to increased revenue contributions from its livestock and poultry-related products segment.

Earnings per share jumped to 84 sen for the quarter ended June 30, 2021, from 45 sen in the same quarter last year.

In a bourse filing, the integrated poultry, egg and livestock feed producer said its quarterly revenue expanded 30.1% to RM1.85 billion, from RM1.43 billion previously.

This higher earnings came as its livestock and poultry related products segment’s revenue grew 22.9% to RM992.46 million, from RM807.28 million in the corresponding quarter a year ago.

“This was mainly due to robust sales volume growth and resilient average selling price (ASP) of day-old chicks in Indonesia and Malaysia, broiler chickens in Malaysia and Philippines, as well as higher business-to-consumer channel contribution in Malaysia,” the group said.

Meanwhile, its feedmill segment’s revenue also improved 39.7% to RM858.88 million, from RM614.69 million a year ago, as Indonesia and Vietnam reported higher sales volume and ASP of livestock feed.

On a quarter-on-quarter basis, however, the group’s net profit fell 56.3% from RM70.33 million in the preceding quarter, while revenue was up 10.6% from RM1.67 billion.

For the first half, the group posted a net profit of RM100.83 million, a 164.9% jump from RM38.06 million recorded in the previous January-June period. 

Six-month revenue increased 23.5% to RM3.53 billion from RM2.86 billion previously.

In a separate statement, Leong Hup executive director and group CEO Tan Sri Lau Tuang Nguang said movement restrictions are still in force for most of the group’s operating markets.

“Towards this end, we expect some short- to medium-term headwinds to persist as a result of the ongoing fluctuations in the demand and adjustments in the supply of poultry products.

“The durability of the group’s recovery is, therefore, contingent upon the extent to which the Covid-19 pandemic is effectively controlled and restrictions are eased in each of the group’s operating markets,” he added.

Leong Hup’s share price closed unchanged at 68 sen, valuing the group at RM2.48 billion.