KUALA LUMPUR (Aug 10): Biscuit maker Hup Seng Industries Bhd (KL:HUPSENG) remains optimistic about its performance for the financial year ending Dec 31, 2026 (FY2026), after posting a 21.5% year-on-year jump in its second-quarter net profit.

This is despite an operating environment that it flagged would remain challenging due to domestic market competition, cautious consumer spending and input cost uncertainties, it said in its latest quarterly results filing on Monday.

The group made a net profit of RM10.34 million for the three months ended June 30, 2026 (2QFY2026), up from RM8.51 million a year earlier, as revenue inched up 1.3% to RM85.98 million from RM84.84 million.

It attributed the higher earnings primarily to lower input costs of certain major raw materials during the quarter, alongside higher overall sales of biscuits.

While export markets continue to present growth opportunities, Hup Seng said it remains mindful of global economic uncertainties and currency fluctuations, though it is optimistic about its performance for the full financial year.

"Management will remain vigilant and responsive to changing market conditions. Despite these challenges, the group will continue to focus on operational efficiency and cost management to mitigate the impact of fluctuations in raw material prices and other operating costs," said Hup Seng.

The board declared a second interim single-tier dividend of one sen per share for the quarter under review, with the entitlement date to be announced in due course. Including the first interim dividend of one sen paid on July 13, cumulative FY2026 payout totalled two sen per share.

For the first half ended June 30, 2026 (1HFY2026), Hup Seng's cumulative net profit grew 9.5% to RM20.92 million from RM19.11 million in 1HFY2025, as revenue edged up 0.4% to RM177.20 million from RM176.56 million.

The group said export market sales expanded 14% during the half-year period, driven mainly by stronger demand in Myanmar, Thailand, the US, Japan, and Indonesia, which offset a 3% decline in domestic sales across most channels.

Hup Seng shares closed unchanged at 94.5 sen on Monday, giving the group a market capitalisation of RM756 million. The stock is little changed from a year ago.