PETALING JAYA: Leong Hup International Bhd’s (LHIB) net profit for its second quarter (Q2) ended June 30, 2021 rose to RM30.50mil from RM16.23mil in the previous corresponding period, on the back of higher earnings from its livestock and poultry-related products as well as its feedmill business.
In a filing with Bursa Malaysia yesterday, the company said revenue in the quarter increased to RM1.85bil from RM1.43bil a year earlier.
LHIB said livestock and poultry-related products recorded higher revenue from Indonesia, Malaysia and the Philippines.
“The increase in revenue from Indonesia was primarily a result of favourable average selling prices and sales volume of day-old-chicks (DOC) and broiler chickens.
“Higher revenue from Malaysia was mainly due to an increase in the average selling price and sales volume of broiler chickens, as well as the expansion of the downstream business-to-consumer channel since June 2020.”
Leong Hup eggs
LHIB said revenue from the Philippines increased due to higher average selling price and sales volume of DOC and broiler chickens. The company added that the revenue increase for its feedmill business was primarily due to a higher sales volume and average selling price of livestock feed in Indonesia and Vietnam.
For the six-month period ended June 30, 2021, LHIB’s net profit grew to RM100.83mil from RM38.06mil in the previous corresponding period, while revenue rose to RM3.53bil from RM2.86bil a year earlier.
On its prospects going forward, LHIB said its performance in the next six months will depend on the extent to which the Covid-19 pandemic is effectively controlled and if restrictions are eased in each of the group’s operating markets.
“Due to the recent surge in Covid-19 cases in most of the countries in which the group operates, the respective governments have had to re-impose lockdown measures or additional movement restrictions.
“The group has adequate liquidity for operations and is well-positioned to capture opportunities when the market recovers.”