KUALA LUMPUR (Nov 26): Leong Hup International Bhd’s (KL:LHI) net profit for the third quarter came in flat despite lower revenue, mainly due to lower tax expenses. 

Net profit for the quarter ended Sept 30, 2024 (3QFY2024) was 1.55% higher at RM135.02 million versus RM132.96 million in the same quarter last year, as tax expenses fell 67.82% to RM16.15 million from RM50.18 million, according to the poultry firm’s bourse filing on Tuesday.

Quarterly revenue, however, fell 11.45% to RM2.23 billion as compared to RM2.52 billion on lower average selling price and sales volume of day-old chicks in Indonesia and Malaysia.

The group declared a second interim dividend of 1.45 sen per share, payable on Dec 30.

For the nine months ended Sept 30, 2024 (9MFY2024), net profit rose 30.87% to RM288.09 million from RM220.14 million in the same period last year, as cumulative revenue slipped 1.85% to RM6.99 billion versus RM7.13 billion.

Leong Hup noted the unexpected weakening of the US dollar against currencies of countries it operates in during 3QFY2024 led to lower feed costs, benefitting both the feedmill and livestock segments’ margins. 

“Although recent foreign exchange rate reversals have reduced this benefit, barring unforeseen circumstances, the group expects the financial performance for 2024 to be better than prior year,” it added.

Shares in Leong Hup ended 2.5 sen or 3.94% higher at 66 sen on Tuesday, giving the group a market capitalisation of RM2.41 billion.