KUALA LUMPUR: Leong Hup International Bhd’s (LHI) net profit fell 27.7% to RM37.99mil in the fourth quarter ended Dec 31, 2021 (4Q21) from RM52.55mil a year ago.

       The group said the lower profit was due to elevated input cost of feed which affected the group’s livestock and poultry related products segment, despite the increase in the average selling price (ASP) of poultry products during the quarter under review.

       Revenue, however, rose 12.8% to RM1.81bil from RM1.61bil in the same period last year, on the back of stable revenue growth in both livestock and poultry related products segment and feedmill segment, which expanded by 17.9% and 6.5% respectively.

       LHI said the performance of livestock and poultry related products segment was due to stronger contribution from Malaysia on further strengthening of the ASP of eggs, day-old chicks (DOC) and broiler chickens as well as its business-to-consumer channel, while Vietnam and Philippines both recorded higher sales volume and ASP of broiler chickens.

       Meanwhile, the group’s feedmill segment was resilient on stronger ASP of livestock feed in Vietnam.

       For the full financial year ended Dec 31, 2021 (FY21), LHI recorded revenue of RM7.15bil, up 18.4% as compared to RM6.04bil last year.

       Its net profit for FY21 fell 24.5% to RM85.4mil versus RM113.15mil recorded in the preceding year, impacted by the rise in raw material costs which outpaced the increase in the ASP of livestock feed.

       Executive director/ group chief executive officer Tan Sri Lau Tuang Nguang said: “We look forward to better results ahead in an improved economic environment, driven by pent-up demand, paving the way for a more robust increase in consumption.”

       “Entering into 2022 and amid the current threat of the Omicron variant, we observe that the region is rebuilding itself from the pandemic as society learns to coexist with Covid-19 in the ‘new normal'.

       “Against this improving economic backdrop, we are proceeding with several key strategic initiatives such as the expansion of our aquatic feed products, as well as continued integration of our ‘Farm-to-Plate’ business to build resilience and to position the group to capture potential upside in the recovery narrative of our operating markets,” Lau said.