KUALA LUMPUR: Leong Hup International Bhd posted a net loss of RM53.42mil in the third quarter ended Sept 30, 2021, compared to a net profit of RM22.53mil in the same quarter in the previous year.
The poultry producer said in a bourse filing that Ebitda from livestock and other poultry-related products decreased 350.6% due to the lower average selling price (ASP) of broiler chickens in Vietnam and margin compression from the general increase in input cost of feed, which could not be passed on due to weaker demand from the Covid-19 pandemic.
The group posted a loss per share of 1.46 sen compared to earnings of 0.62 sen per share in the same 2020 quarter.
Revenue in the quarter under review was RM1.81bil, a 14.98% increase from the previous corresponding quarter, on the back of improved contributions from Indonesia and Malaysia.
In Indonesia, there were higher sales volume of broiler chicks and a favourable ASP of day-old-chicks and broiler chickens.
Meanwhile, Malaysian revenue was bolstered by an increase in the ASP of eggs as well as the expansion of its downstream business-to-consumer channel since June 2020.
Moving forward, Leong Hup executive director and group CEO Tan Sri Francis Lau said consumption has improved as economies reopen although business conditions remain challenging as demand remains below pre-Covid-19 levels.
“We are optimistic that the group will continue to navigate the new market reality with our fundamentals firmly intact.
“Our priority is the health and safety of our people, and we remain steadfast in supporting domestic food security and the economic recovery of our operating markets, while staying focused on the execution our ‘Farm-to-Plate’ strategy,” he said in a statement.
He added that the group’s downstream play continues to be a key strategic focus as it seeks to diversify its revenue base, reinvest into profitable growth and deepen integration within the poultry value chain.