KUALA LUMPUR (Nov 6): Biscuit maker Hup Seng Industries Bhd (KL:HUPSENG) said its net profit rose 32.65% year-on-year in the third quarter, boosted by higher sales from increased production capacity following the commercial run of a new oven.

Net profit for the three months ended Sept 30, 2024 (3QFY2024) rose to RM17.27 million — its highest since the company was listed in 2000 — from RM13.02 million a year ago, according to its bourse filing. Earnings per share increased to 2.16 sen from 1.63 sen.

Revenue for the quarter grew 10.87% to a record high of RM104.43 million compared to RM94.19 million in 3QFY2023, thanks to improved sales in both the domestic and export markets.

“Domestic market increased 11% or RM8.2 million compared to the previous corresponding period from all channels. Similarly, export market increased 12% or RM2 million compared to previous corresponding period mainly from Indonesia, Japan and Saudi Arabia,” Hup Seng said.

The company, famous for its “Cap Ping Pong" crackers, has declared a second interim dividend of two sen per share and a special dividend of one sen per share. This raises the total dividend so far in FY2024 to five sen per share, compared with four sen in FY2023.

For the first nine months of FY2024), Hup Seng’s net profit increased 28.23% to RM40.27 million from RM31.41 million in the same period of FY2023, helped by lower lower input costs of certain main minerals.  

Revenue for the nine months rose 6.15% to RM278.23 million from RM262.12 million as domestic sales for retail and modern channels improved, as well as export sales from Indonesia, Mauritius, Japan, Singapore and Brunei.  

“Whilst the group’s third quarter performance was encouraging, we remain cautious, in view of the highly competitive nature of the industry,” the company said in its filing, adding that it expects increased costs for raw materials, especially palm oil, as it foresees tighter supply in the near future.

Nonetheless, the group said that it plans to focus on streamlining its operations and enhancing brand awareness while continuing to maintain and improve its product quality.

“The group will also focus on strengthening the domestic and export markets and strive to ensure a steady supply of products to satisfy the needs of consumers. The group will leverage operational efficiencies and cost-saving initiative to ensure that a better performance is achieved,” it added.

Shares of Hup Seng settled up two sen or 1.85% at RM1.10 on Wednesday, valuing the group at RM880 million. The counter has risen over 40% year-to-date.