Leong Hup International recorded record revenue for fiscal year 2023, the Malaysia-based poultry, egg and feed producer recently announced.
The company reported a revenue of MYR9.54 billion (US$2 billion) for the year, which was an improvement of 5.5% when compared to fiscal year 2022. For the fourth quarter of FY 2023, the company achieved MYR2.41 billion in revenue, a 3.9% year-over-year increase.
Broken down geographically, Indonesia was the highest revenue contributor during the fourth quarter, accounting for 38.5% of the revenue, followed by Malaysia (24.4%), Vietnam (22.2%), Singapore (8.4%) and Philippines (6.6%).
Highlights for the quarter for the poultry business included higher sales volumes for broiler chickens in Indonesia, higher sales volumes for dressed chickens in Philippines, and fresh chicken sales volumes rose in Singapore because of a lifting of trade restrictions.
The company also saw higher sales volumes of feed in Indonesia and Philippines in 2023. Leong Hup International’s feed business also benefited from reduced raw material costs across Vietnam, Indonesia and Philippines.
“We are pleased to have achieved the highest profit ever for the group,” Leong Hup International Managing Director and CEO. “During the year, the group had reduced its borrowings by MYR574.63 million and lowered its net gearing ratio. This provides the group with a strong financial position to capture potential opportunities in our operating markets.”
“As we enter into 2024, lower inflation outlook and expected reduction in interest rates would stimulate demand. Poultry is a relatively affordable source of protein, therefore we are confident that the industry will continue to thrive.”
Leong Hup International is the ninth largest egg producer in Asia with a flock of 6.5 million hens. It ranks 19th among Asian broiler producers, having slaughtered 142.3 million broilers during the past year. As a feed producer, Leong Hup ranks 54th worldwide, with an annual production of 2.27 metric tons.
