KUALA LUMPUR (Feb 19): Biscuit maker Hup Seng Industries Bhd said on Monday its 2023 net profit surged nearly 73% to a seven-year high as sales rose and costs fell, while proposing special dividends.

Net profit for the year ended Dec 31, 2023 (FY2023) was RM45.09 million compared to RM26.08 million a year earlier, Hup Seng said in an exchange filing. Revenue increased 12.28% to RM357.27 million from RM318.19 million on higher volume.

Hup Seng, however, expects this year to be “very challenging” with the operating environment expected to remain highly competitive. In response, the company said it will “evolve to meet the demands of consumers and strive to continue to maintain and improve product quality”.

The group will also focus on maintaining the market share and product competitiveness in order to increase the popularity of Hup Seng biscuits in the industry, the biscuit maker said, adding it will leverage operational efficiencies and cost-saving initiatives for better performance in 2024.

Hup Seng recommended a special dividend of 0.5 sen per share on top of a third interim dividend of 1.5 sen per share.

For the fourth quarter of 2023, Hup Seng’s net profit climbed 10% to RM13.68 million from RM12.44 million in the same quarter a year earlier on the back of the lower cost of certain major input materials.

Quarterly topline was up a marginal 0.23% year-on-year to RM95.15 million versus RM94.93 million previously as domestic sales increased while export sales declined.

Shares in Hup Seng ended up 0.5 sen, or 0.62% higher, at 81 sen, valuing the biscuit maker at RM644 million.