PETALING JAYA: Leong Hup International Bhd (LHI) saw its revenue rise 15% to RM1.81bil for the third quarter ended Sept 30, 2021 (Q3’21) from RM1.57bil in Q3’20, lifted by its livestock and poultry-related products segment.

The integrated producers of poultry, eggs and livestock feed said during the quarter in review, the segment posted a growth of 9.5% in revenue on higher contribution from Indonesia and Malaysia.

However, due to the escalation of the Covid-19 pandemic, LHI slipped into a net loss of RM53.42mil in Q3’21 from a net profit of RM22.53mil in Q3’20.

In a statement, the company said broad-based lockdowns had negatively affected all demand channels, as economic activities were significantly scaled back during Q3’21.

While the group managed to maintain its normal operating capacity, demand curtailment was more pronounced than previous quarters due to the simultaneous implementation of strict movement restrictions across LHI’s operating markets, namely Malaysia, Indonesia, Vietnam and the Philippines, it said.

Year-to-date, LHI’s revenue rose 20.3% to RM5.33bil from RM4.43bil in the nine months to September 2020, while net profit fell to RM47.42mil from RM60.59mil.

Leong Hup Lau Tuang NguangLeong Hup Lau Tuang Nguang

Commenting on the group’s prospects, LHI executive director/group CEO Tan Sri Francis Lau Tuang Nguang (pic above) said although improving, business conditions had remained tough with demand hovering below pre-Covid-19 levels.

“Nevertheless, we are optimistic that the group will continue to navigate the new market reality with our fundamentals firmly intact.

“As we deploy business recovery measures, cost leadership remains an important and ongoing agenda.

“The group’s downstream play continues to be a key strategic focus, as we seek to diversify LHI’s revenue base, reinvest into profitable growth and deepen integration within the poultry value chain,” he added.

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