KUALA LUMPUR (Feb 14): Stronger domestic sales lifted biscuit maker Hup Seng Industries Bhd’s net profit for the fourth quarter ended Dec 31, 2022 (4QFY2022) by 28.08% to RM12.44 million from RM9.71 million a year earlier.
Earnings per share climbed to 1.55 sen as compared to 1.21 sen previously, according to Hup Seng’s Bursa Malaysia filing on Tuesday (Feb 14).
Carried by a 23% rise in domestic sales, the group’s quarterly revenue increased 16.05% to RM94.93 million versus RM81.81 million.
The group has recommended an interim single-tier dividend of one sen per share for the quarter under review.
Meanwhile, Hup Seng’s net profit for the full year ended Dec 31, 2022 (FY2022) slipped 4.25% to RM26.08 million from RM27.24 million a year prior, despite a 7.56% increase in revenue to RM318.19 million from RM295.83 million.
Hup Seng attributed the decline in its bottomline to the increased competitive nature in the industry as well as the overall escalating commodity prices for the better part of the year.
Full-year revenue was supported by a 9% increase in domestic sales and a 4% increase in export sales, mainly from Saudi Arabia, the Maldives and Indonesia.
Looking ahead, Hup Seng said it will remain cautious and vigilant as it believes FY2023 will be a “very challenging” year in view of expectations for the operating environment to remain highly competitive.
“Recognising and understanding the changing business environment, the group will continue to monitor closely the environment of commodity prices, evaluate and adjust the pricing strategies and/or resizing major products when the need arises,” the group added.
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 (FY2023),” it added.
Shares in Hup Seng ended three sen or 4.05% higher at 77 sen, giving the group a market capitalisation of RM611.72 million.