PETALING JAYA: Leong Hup International Bhd, which is slated to be listed on the Main Market of Bursa Malaysia this Thursday, saw its net profit for the first quarter ended March 31, 2019 rise 15% to RM60.58 million from RM52.68 million a year ago.
The better earnings were driven by higher sales of eggs, broiler day old chicks (DOCs) and feedmill.
In a filing with Bursa Malaysia, the group said its earnings before interest, tax, depreciation and amortisation (ebitda) from livestock and poultry related products rose 25.9% during the quarter to RM118.92 million from RM94.49 million a year ago.
The higher ebitda was primarily contributed by sales of eggs in Malaysia and sales of broiler DOC in Indonesia.
Ebitda from feedmill rose 36.3% to RM85.19 million from RM62.5 million a year ago due to higher sales in Indonesia as well as from the Dong Nai feedmill plant in Vietnam, which commenced operations in January 2019.
Leong Hup’s revenue for the quarter rose 11.9% to RM1.51 billion from RM1.35 billion a year ago, driven by revenue from feedmill which rose 27% to RM643.63 million from RM506.67 million a year ago.
The higher feedmill revenue was due to an increase in sales volume and average selling price of livestock feed in Indonesia and Vietnam during the quarter.
Revenue from sales of livestock and poultry related products rose 2.7% to RM859.65 million from RM837.17 million a year ago due to higher sales volume and average selling price of eggs in Malaysia as well as average selling price of broiler DOCs in Indonesia.
However, the overall revenue was partially offset by a drop in revenue from sales in Singapore, due to the loss of revenue from a subsidiary Jordon International Food Processing Pte Ltd following the disposal of the subsidiary on June 30, 2018.
Moving forward, Leong Hup is optimistic of achieving positive results this year, as it has invested in significant capacity expansion over the past year.
Source: The Sun Daily