Hup Seng’s 4Q net profit surged by 28% due robust domestic sales

Revenue in quarter also rises 16.05% to RM94.9m

BISCUIT maker Hup Seng Industries Bhd’s net profit for the fourth quarter ended Dec 31, 2022 (4Q22) rose by 28.08% to RM12.44 million from RM9.71 million a year earlier as a result of stronger domestic sales. 

Earnings per share climbed to 1.55 sen compared to 1.21 sen previously, according to Hup Seng’s Bursa Malaysia filing yesterday.

Revenue in the said quarter was up 16.05% to RM94.93 million compared to RM81.81 million as domestic sales grew by 23% in all channels.

The group has recommended an interim single-tier dividend of one sen per share for the quarter under review.

For the 12 months period, Hup Seng’s net profit fell 4.25% to RM26.08 million from RM27.24 million previously due to the increased competitive nature in the industry and overall escalating commodity prices of materials for the better part of the year.

Revenue, however, grew by 7.56% to RM318.19 million driven by a 9% increase in domestic sales and a 4% increase in export sales mainly from Saudi Arabia, Maldives and Indonesia.

Hup Seng’s 2023 will be a very challenging year in view of expectations for the operating environment to remain highly competitive.

“The group will have to be cautious and stay vigilant,” it said.

It said the group will continue to monitor closely the environment of commodity prices, evaluate and adjust the pricing strategies as well resizing major products when the need arises.

Nevertheless, Hup Seng said it will continue to maintain and improve product quality, innovate its products portfolio, reduce costs and broaden the distributor network to drive higher sales and growth in market share.

“The group will leverage operational efficiencies and cost savings initiatives to ensure that a better performance is achieved in the coming year,” it added.

Hup Seng closed three sen or 4.05% up at 77 sen yesterday, translating to a market capitalisation of RM611.72 million. — TMR