At a little over 135 million Malaysian ringgit (MYR; US$30.5 million), profit generated over the three months to September 30, 2024, was up 1.5% year-on-year, reports Leong Hup International Berhad.
This was despite a dip of more than 11% in revenue from the previous year. Total group revenue for the latest quarter was a little under MYR2.23 billion — down from almost MYR2.52 billion for the third quarter of 2023.
Leong Hup International attributes the decrease in revenue mainly to lower poultry selling prices, reported The Star. Compared with the same quarter last year, prices were lower for its day-old chicks in Indonesia and Malaysia, broilers in Indonesia, and table eggs in Malaysia. In contrast, the company reports favorable developments in prices of day-old chicks and meat chickens in the Philippines.
Changes in the exchange rate for the US dollar relative to the currencies in which the group operates during the latest quarter resulted in lower feed costs. This benefited both the feed and livestock operations, the company reported.
Year-to-date improvement in profit
For the fiscal year to date (nine months to the end of September), the group reports total revenue at just under MYR7.0 billion, which compares with close to MYR7.13 billion at the same point in 2023.
However, Leong Hup International is reporting a substantial improvement in profit for the period. This amounted to MYR424.8 million for the current year, which is almost MYR140 million higher than for the first nine months of 2023.
For the coming quarter, these positive foreign exchange trends are already reversing. However, Leong Hup Berhad is reported to be expecting better performance for the current full year than for the previous 12 months, according to The Star.
More on Leong Hup International
Annual slaughterings of 174 million birds put Leong Hup International Bhd among the largest poultry companies in Asia, according to WATTPoultry.com’s Top Poultry Companies survey in 2023. Among the group’s main product lines are poultry meats (chicken, turkey, and ducks), as well as eggs and egg products.
Based in Malaysia, the company also operates fully integrated poultry operations for meat and eggs in Singapore, Indonesia, Vietnam, and the Philippines.
For the last full financial year, Leong Hup International reported record revenue of MYR9.54 billion — a year-on-year increase of more than 5%.
In the 12 months to December 31, 2023, the group sold 576 million day-old chicks, 174 million broiler chickens and more than 1.9 billion table eggs, according to the firm’s web site. Feed sales over the same period amounted to 2.7 million metric tons (mmt). Total group production capacity is reported to be more than 4.3mmt.
In Asia, Leong Hup International is also among the leading feed producers outside China, according to Feed Strategy’s Top Feed Companies survey for last year. With a total annual production of 2.671mmt, the group manufactures and sells feed for aquaculture, poultry, pigs, ruminants, horses, and pet animals.
