PETALING JAYA: Leong Hup International Bhd reported a revenue of RM1.81bil for the fourth quarter ended Dec 31, 2021 from RM1.61bil a year ago, boosted by sales from Malaysia, Vietnam and the Philippines.

       “Higher revenue from Malaysia was mainly due to an increase in the average selling prices of eggs, day-old-chicks (DOC) and broiler chickens, as well as the expansion of its downstream business-to-consumer channel since June 2020.

       “The increase in revenue from Vietnam and the Philippines was primarily due to a higher sales volume and average selling price of broiler chickens,” it said in a filing with Bursa Malaysia yesterday,

       Leong Hup said revenue from the feedmill increased by 6.5% from RM704.9mil during the quarter ended December 2020 to RM750.8mil for the quarter ended December 2021.

       The increase was primarily due to higher average selling prices in Vietnam.

       Net profit, however, fell 28% in the fourth quarter to RM37.99mil from RM52.56mil a year earlier, mainly due to margin compression stemming from the elevated input cost of feed.

       Leong Hup said net profit was lower despite the increase in average selling price of poultry products.

       The earnings before interest, taxes, depreciation, and amortisation (Ebitda) from livestock feed increased by 29.9%, primarily due to improvement in the margin contribution from Vietnam.

       For its financial year ended Dec 31, 2021, Leong Hup’s net profit dropped to RM85.40mil from RM113.15mil in the previous corresponding period, while revenue grew to RM7.15bil from RM6.04bil.

       Leong Hup said this was due to higher revenue from Indonesia, Malaysia and the Philippines.

       “The increase in revenue from Indonesia was primarily a result of higher average selling price and sales volume of broiler chickens.

       “Higher revenue from Malaysia was mainly due to an increase in the average selling price of DOC, broiler chickens and eggs, as well as the expansion of its downstream business-to-consumer channel since June 2020.”

       Additionally, the company said revenue from the Philippines increased due to higher average selling prices and the sales volume of DOC and broiler chickens.

       “The Ebitda from livestock and other poultry-related products increased by 31%. The increase was primarily due to better margins arising from the higher average selling price of DOC in Indonesia, as well as the higher average selling price and sales volume of DOC and broiler chickens in the Philippines.”

       Commenting on its prospects, Leong Hup said increased vaccination rates in the countries that the group operates in have allowed for gradual relaxation of lockdowns and movement controls.

       “Consumption has improved as economies reopened but business conditions remain challenging as demand remains below pre-Covid-19 levels.

       “The board remains vigilant but is cautiously optimistic that the worst may be behind us. The group has adequate liquidity for operations and is well-positioned to capture opportunities as the market recovers,” it said.