Big jump for egg producer Lay Hong’s 3Q profit

For the 9 months, Lay Hong posted a net profit of RM63m, up 321% from the same period last year

EGG producer Lay Hong Bhd saw its net profit for the third quarter ended Dec 31, 2023 (3Q23) jump almost eight times to RM54.9 million compared to the same quarter last year, partly thanks to government subsidies. 

In an exchange filing today, it said its 3Q revenue of RM266.7 million was about the same as the 3Q22. 

For the nine-month period, Lay Hong posted a net profit of RM62.9 million, up 321% from the same period last year, on a turnover of RM768.7 million, down 4%. 

In the cumulative nine months, its integrated livestock farming revenue dropped 13% to RM594.15 million due to lower egg sales quantity from lower production of eggs. It also saw a 11% revenue drop in its retail business due to lower retail sales quantity. 

However, its food manufacturing revenue was up 28% to RM390.11 million due to increase in sales quantity of primary processed and further processed poultry products. 

Overall, it posted a higher pretax profit of RM87.4 million compared to RM10.6 million in the previous quarter, inclusive of subsidies received from the government. 

Moving forward, the company said the industry remained challenging due to the continuous importation of frozen chicken into the domestic market. 

It also noted that though the cost of feed has gone down, the ringgit exchange rate against the US dollar continued to rise with a recent exchange close to RM4.80. 

However, it said the company remained positive that the group will remain profitable due to its diversification into further processing and liquid eggs production. — TMR / pic source: Lay Hong Bhd