KUALA LUMPUR (Aug 11): Hup Seng Industries Bhd (KL:HUPSENG) reported a 5.7% year-on-year decline in second quarter net profit despite a similar 5.7% increase in revenue, as higher raw material costs offset gains from stronger sales.

Its net profit for the second quarter ended June 30, 2025 (2QFY2025) fell to RM8.51 million from RM9.03 million a year earlier, as cost of sales rose 8.9% during the quarter, said the biscuit maker in a bourse filing on Monday.

Revenue increased to RM84.84 million from RM80.24 million, supported by a 9% or RM5.5 million rise in domestic sales, particularly from East Malaysia, wholesale channels and super/hypermarkets. This was partially offset by a 5% or RM900,000 decline in export sales, mainly from Indonesia and Myanmar, the group said.

Hup Seng declared a dividend of two sen per share for the quarter, unchanged from a year ago.

For the first half of FY2025, total net profit fell 16.9% to RM19.11 million from RM23 million a year earlier, as revenue edged up 1.6% to RM176.56 million from RM173.8 million.

Looking ahead to the second half, the group said it will maintain a cautious stance amid ongoing geopolitical uncertainties. It noted that key raw material costs remain vulnerable to supply chain disruptions and regulatory developments, with upward price pressures expected.

Nonetheless, Hup Seng said it will continue to prioritise operational efficiency to mitigate cost pressures and will closely monitor market dynamics to remain competitive and sustain stable performance.

Hup Seng’s shares closed down 1.5 sen or 1.6% to 94 sen, valuing the group at RM752 million. Year to date, the counter has declined 23%.