Hup Seng Industries’ net profit in 2Q22 declined 55% from 1Q22

by SHAFIQQUL ALIFF / pic source Hup Seng’s Facebook

HUP Seng Industries Bhd saw its net profit for the second quarter ended June 30, 2022 (2Q22), dipped by 55% to RM3.03 million compared to RM6.77 million posted in the 1Q22 due to continuous escalation of the prices of materials.

In a filing to Bursa Malaysia yesterday, the biscuit maker said that for the first half of 2022, its net profit also fell 15% to RM9.8 million from RM13.4 million recorded in the same period last year.

The group’s revenue for the six months ended June 30, 2022, has increased by 3% to RM153 million from RM149 million last year attributable to increase in selling prices. 

However, on a quarterly basis, the company saw its revenue shrank by 7% to RM73 million in the 2Q22 compared to RM79 million in the preceding quarter.

The group remains cautious about its prospects amid inflation pressure, supply chain and labour shortage issues.

“The sharp increase in the global commodity prices and the government’s gradual withdrawal of food and fuel subsidies, which put pressure on the group’s input costs, remain a concern.

“The group will monitor closely the development of commodity prices, evaluate and adjust its pricing strategies, and/or resize major products when the need arises.

“The group will leverage operational efficiencies and cost savings initiatives so as to achieve a most satisfactory performance,” Hup Seng Industries noted.

The company’s earnings per share fell to 0.38 from 0.45 posted in the corresponding period last year.