KUALA LUMPUR (Nov 10): Hup Seng Industries Bhd (KL:HUPSENG) has flagged a challenging operating environment due to ongoing cost pressures and uncertain export conditions, after posting a 10.4% year-on-year decline in net profit for the third quarter of 2025.
In a filing with Bursa Malaysia on Monday, the confectionery group reported that its net profit for the three months ended Sept 30, 2025 (3QFY2025) fell to RM15.47 million from RM17.27 million a year earlier, although revenue inched up to RM105.7 million from RM104.43 million.
It attributed the lower net profit to higher raw material and distribution costs, which outweighed the marginal increase in sales, particularly from the domestic market.
This brought its earnings per share down to 1.93 sen in 3QFY2025, from 2.16 sen a year earlier.
While it expected the challenging operating environment to persist, Hup Seng said it is optimistic on sustaining its performance for the remaining financial year, betting on its "well-established brand and loyal customer base".
"The group remains committed to prioritise cost control, improve operational efficiency, and strengthen growth opportunities in both domestic and export markets," it added.
The board has declared a dividend of two sen per share for the quarter under review, with the entitlement date to be announced. Including earlier declared dividends, total FY2025 payouts now stand at six sen per share.
For the nine-month period ended Sept 30, 2025 (9MFY2025), cumulative net profit fell 14.2% to RM34.58 million from RM40.27 million in the same period last year, even though its revenue edged up 1.4% to RM282.26 million.
The group said its domestic sales grew 4% during the period, while export sales declined about 7%, mainly due to lower biscuit exports to Indonesia, Mauritius, Myanmar, and Singapore.
Shares of Hup Seng closed up three sen or 3% to RM1.03 on Monday, giving it a market capitalisation of RM824 million. The stock was down more than 15% year-to-date.