KUALA LUMPUR (Nov 9): Hup Seng Industries Bhd’s net profit for the third quarter ended Sept 30, 2022 (3QFY2022) dropped 6.05% to RM3.84 million from RM4.08 million in the same period last year, dragged down by higher raw material costs.

Earnings per share was reduced to 0.48 sen from 0.51 sen previously, according to the biscuit maker's filing with Bursa Malaysia on Wednesday (Nov 9).

Quarterly revenue, however, climbed 8.35% to RM70.19 million from RM64.79 million in the same period a year ago on improved contribution from both domestic and export markets.

“Export market increased 9% or RM1.4 million mainly from Saudi Arabia and Indonesia. Domestic market increased 8% or RM4 million from the modern channel,” it said.

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

For the nine-month period, Hup Seng’s net profit fell 22.17% to RM13.64 million from RM17.53 million a year prior despite cumulative revenue growing 4.31% to RM223.26 million from RM214.03 million.

Hup Seng said the operating environment is expected to remain highly competitive for the rest of the year. As such, the group will continue to monitor closely the movement of commodity prices, evaluate and adjust its pricing strategies or re-size major products when the need arises.

“The group will leverage operational efficiencies and cost savings initiatives so as to achieve a better performance,” it added.

Hup Seng’s share price finished unchanged at 65 sen, bringing it a market capitalisation of RM520 million.