KUALA LUMPUR (Aug 26): Poultry, egg and livestock feed producer Leong Hup International Bhd (KL:LHI) second-quarter net profit fell 6.4% from a year earlier due to a decline in its Indonesian operations.

Net profit in the three months ended June 30, 2025 (2QFY2025) was RM90.29 million compared with RM96.50 million in the same quarter last year, according to the group’s bourse filing.

Revenue for the quarter dropped 9.4% year-on-year to RM2.13 billion from RM2.36 billion, as revenue for its feed mill segment fell 15.5% during the quarter to RM832 million on lower selling prices in Indonesia.

Revenue for its livestock and poultry segment also declined 5.1% during the quarter to RM1.3 billion from RM1.37 billion a year ago, mainly due to lower selling prices and reduced sales volumes of day-old chicks (DOC), as well as a decline in broiler selling prices in Indonesia.

In contrast, revenue in Malaysia increased, supported by higher prices and sales volumes of DOC and increased broiler sales volume, although this was partially offset by a decline in broiler selling prices, the group said.

Table eggs selling prices in Malaysia also declined during the quarter under review, partially mitigated by higher sales volumes.

Meanwhile, its operations in the Philippines recorded revenue growth, mainly driven by higher selling prices and sales volumes of dressed chicken and broilers.

For the first half ended June 30, 2025 (1HFY2025), Leong Hup's net profit rose 25.5% to RM192.10 million from RM153.07 million in 1HFY2024, though revenue dropped 8.9% to RM4.34 billion from RM4.77 billion.

The group did not declare any dividend for the latest quarter.

Looking ahead, the group remains cautiously optimistic on its FY2025 performance and expects to deliver a “satisfactory performance” this year.

“The group remains cautiously optimistic as opportunity for growth in chicken and egg consumption per capita remains high in the countries where we operate,” Leong Hup said.

“We expect margins to remain relatively stable with the current outlook on feed input costs, particularly from corn and soybean meal,” it added.

Leong Hup's closed one sen or 1.54% lower at 64 sen on Tuesday, valuing the group at RM2.34 billion.