KUALA LUMPUR (Feb 10): Biscuit maker Hup Seng Industries Bhd (KL:HUPSENG) sustained its record earnings streak in the fourth quarter of 2024, with net profit rising 26.74% year-on-year, driven by higher sales.

The commercial operation of its new oven, which commenced in the third quarter, contributed to increased production capacity, resulting in higher sales, the company said in a bourse filing on Monday.

Net profit for the three months ended Dec 31, 2024 (4QFY2024) climbed to RM17.34 million — its highest since listing in 2000 — from RM13.68 million a year earlier. Earnings per share rose to 2.17 sen from 1.71 sen.

Quarterly revenue surged 23.09% to a record RM117.12 million from RM95.15 million in 4QFY2023, supported by stronger domestic and export market contributions.

“The domestic market increased 26% or RM19.2 million compared to previous corresponding period from all channels. Export market increased by 13% or RM2.8 million mainly from Indonesia, Thailand, Japan and Myanmar,” Hup Seng said. 

The company, known for its Cap Ping Pong crackers, did not declare any dividend during the quarter.

Looking ahead, Hup Seng said it remains cautious given the highly competitive industry landscape, but will stay vigilant and adaptable to market shifts.

“We anticipate further challenges, particularly with the rising cost of raw materials, especially palm oil, due to supply constraints in the near future and possible risks of higher tariffs,” it said. 

Hup Seng closed FY2024 with a record net profit of RM57.61 million, up 27.78% from RM45.09 million in FY2023. This increase was attributed to lower input costs for key materials during the first three quarters.

Full-year revenue grew 10.65% to RM395.35 million from RM357.27 million, driven by higher sales volume.

“Domestic sales registered an increase of 11% or RM30.6 million from all channels. Similarly, export sales increased by 10% or about RM7.5 million mainly from Indonesia, Japan, Singapore, Myanmar and Mauritius,” Hup Seng noted.

The biscuit maker added that the group remains committed to streamlining operations and enhancing brand awareness.

“We will continue to focus on maintaining and improving product quality, which remains central to our strategy. Additionally, the group will focus on strengthening both the domestic and export markets, working to ensure a steady supply of products that meet consumer demand,” it said.

Shares of Hup Seng closed two sen or 1.8% lower at RM1.09 on Monday, valuing the company at RM872 million.