by HARIZAH KAMEL / pic by TMR FILE
LEONG Hup International Bhd’s earnings for the first quarter ended March 31, 2021 (1Q21) surged 222.8% year-on-year (YoY) to RM70.33 million or earnings per share of 1.93 sen.
Quarterly revenue increased 16.9% YoY to RM1.68 billion, driven by the double-digit growth in revenue of the group’s livestock and poultry-related products and feedmill segments.
For its livestock and poultry-related products segment, revenue strengthened 16.9% YoY to RM915.16 million, driven by the recovery of average selling price (ASP) and sales volume growth of day-old chicks and broiler chickens in Indonesia and the Philippines.
The segment’s performance was buoyed by strong performance from the group’s businesses in Malaysia.
The group’s feedmill segment registered revenue of RM758.35 million, a growth of 17% YoY, on higher sales volume and ASP of livestock feed in Vietnam and Indonesia.
On a geographical segmentation review, Indonesia continues to be the largest market of the group, contributing RM613.68 million (36.6%) to Leong Hup’s total revenue in the period.
Malaysia was the second-highest market at RM443.33 million, followed by Vietnam with RM385.1 million, while Singapore and the Philippines contributed RM189.87 million and RM44.57 million respectively.
Leong Hup ED and group CEO Tan Sri Francis Lau Tuang Nguang said the group is on course to stage a recovery on the back of solid top-line growth, underpinned by continuous volume expansion and vigilance in cost management.
“While Covid-19 and other exogenous factors will continue to pose uncertainty and pressure on our business, we are encouraged to see traction with the strategies undertaken since last year,” he said in a statement yesterday.
Lau noted that notwithstanding transitory setbacks which may temper the economic recovery, the group is optimistic on its market’s operating environment and expects to sustain the sequential recovery in earnings since the second half of 2020.
The group has ample liquidity for its operations and this has entrenched its position to capture opportunities in alignment to market recovery.
Leong Hup declared an interim single-tier dividend of 0.66 sen per ordinary share payable on July 9, 2021.