KUALA LUMPUR: Leong Hup International Bhd's net profit for the second quarter of the financial year ended June 30, 2024 (2Q FY2024) rose to RM96.49 million from RM65.03 million last year.
Meanwhile, the revenue for the quarter under review decreased to RM2.35 billion from RM2.41 billion previously, due primarily to lower average selling prices and sales volumes in Vietnam and Malaysia, as well as lower sales volume in Indonesia.
For the cumulative six months, Leong Hup's net profit almost doubled to RM153.07 million from RM87.17 million, and its revenue rose to RM4.76 billion from RM4.61 previously.
In a Bursa Malaysia filing, the integrated producers of poultry, eggs and livestock feed said the group's revenue from sales of livestock and poultry-related products increased by 3.4 per cent to RM1.37 billion in 2Q FY2024 from RM1.32 billion in the previous corresponding quarter.
"The higher revenue was due mainly to significant increases in average selling price and sales volume of day old chicks (DOC) and broiler chickens in Indonesia.
"The higher revenue was also contributed by higher average selling price and sales volume of DOC in the Philippines. Earnings before interest, taxes, depreciation, and amortisation (Ebitda) increased by 71.3 per cent, due primarily to improved margins in Indonesia and the Philippines," it said.
Leong Hup said its revenue from the feedmill segment decreased by 9.5 per cent to RM984.2 million in the quarter under review from RM1.08 billion in 2Q FY2023.
"Notwithstanding the decrease in revenue, Ebitda improved by 6.6 per cent as the group benefits from expansion of margins in all countries due mainly to lower raw material costs," it said.
On prospects, Leong Hup said that in terms of geographical segments, Malaysia and Singapore's results normalise from the prior year's extraordinary performance, while Indonesia, Vietnam, and the Philippines continue to strengthen and improve.
"Barring unforeseen circumstances, the group expects to achieve a satisfactory performance for FY2024," it added.
-- BERNAMA