KUALA LUMPUR (Feb 27): Improved margins lifted Leong Hup International Bhd's (KL:LHI) net profit to a record high of RM179.88 million in the fourth quarter ended Dec 31, 2025 (4QFY2025), a yearly 27.7% growth.
It posted a net profit of RM140.84 million in 4QFY2024.
Earnings per share rose to 5.17 sen from 3.86 sen previously. However, no dividend was declared during the quarter.
Quarterly revenue, however, dropped 1.73% to RM2.28 billion from RM2.32 billion in 4QFY2024, mainly due to lower revenue contribution from both livestock and poultry-related products and feedmills segments, a bourse filing showed.
Leong Hup said the livestock and poultry-related products segment recorded a 28.9% jump in earnings before interest, tax, depreciation and amortisation (Ebitda) to RM265.63 million during the quarter, from RM205.99 million a year ago, supported by improved margins across key markets.
The segment revenue fell 1.4% to RM1.38 billion from RM1.4 billion a year ago, mainly due to adverse foreign currency translation effects. Excluding foreign currency translation effects, the segment revenue grew by 3.9% compared with the corresponding quarter last year.
The revenue in the feedmill segment fell 2.4% to RM887.22 million in 4QFY2025, from RM908.82 million a year ago, due to reduced selling prices and sales volume. The segment Ebitda also declined 11% to RM141.16 million in 4QFY2025, from RM151.53 million previously.
For the full year of FY2025, its net profit was up 4.93% to a fresh record high of RM501.11 million from RM428.93 million in FY2024, despite revenue declining 5.16% to RM8.83 billion from RM9.31 billion.
Looking ahead, the group said it remains cautiously optimistic, as the opportunity for growth in chicken and egg consumption per capita remains high in the region it operates in. Leong Hup has operations in five countries, namely Malaysia, Singapore, Vietnam, Philippines and Indonesia.
The group also expects margins to be cushioned by the relatively stable outlook of feed input costs and prudent cost management.
Shares in Leong Hup fell one sen to close at 76.5 sen on Friday, giving the group a market capitalisation of RM2.8 billion.