KUALA LUMPUR (May 21): Biscuit maker Hup Seng Industries Bhd (KL:HUPSENG) said on Wednesday that its net profit fell 24% in the first quarter from a year earlier as sales fell and input costs rose.

Net profit for the three months ended March 31, 2025 (1QFY2025) was RM10.6 million, or 1.32 sen per share, according to its stock exchange filing. Revenue for the quarter dipped 2% year-on-year to RM91.7 million dragged by lower exports but cushioned by growth in domestic sales.

The company — known for its Cap Ping Pong crackers — said it remains cautiously optimistic about its outlook for the rest of the year, and flagged a highly competitive operating environment and ongoing global uncertainties.

As margins face further pressure from rising costs, Hup Seng said it remains committed to enhancing operational efficiency to cushion the impact. The company also plans to focus on product innovation and expand its distributor network to safeguard revenue and profitability.

Hup Seng’s exports fell 16% year-on-year in the first quarter partly due to food import restrictions in Myanmar and erratic shipping schedules in Mauritius, and other markets such as the Maldives, Saudi Arabia, and Singapore also reported lower sales.

Domestic sales, however, rose 2% driven mainly by growth in East Malaysia.

No dividend was declared for the quarter as usual. The company had declared its third interim dividend as well as a special dividend in March.

Shares of Hup Seng ended up one sen or 1% at RM1.06 on Wednesday, giving the company a market capitalisation of RM848 million ahead of the results’ announcement.