KUALA LUMPUR (May 30): Leong Hup International Bhd’s (KL:LHI) net profit for the first quarter ended March 31, 2024 (1QFY2024) more than doubled to RM56.58 million as compared to RM22.14 million a year earlier, mainly due to a turnaround in its Indonesian operations on better margins for chicks and chickens.

The poultry, egg and livestock feed producer’s quarterly revenue increased 9.8% to RM2.41 billion from RM2.2 billion a year ago, according to its bourse filing. Earnings per share expanded to 1.55 sen from 0.61 sen previously.

The group did not declare a dividend for 1QFY2024.

The group’s operations in Indonesia posted earnings before interest, taxes, depreciation and amortisation (Ebitda) of RM65.9 million versus Lbitda of RM28.91 million previously, mainly due to higher chick and chicken prices, and sales volume in Indonesia.

“Meanwhile, revenue in the Philippines has grown 10.8 times since 1QFY2019, raising its revenue contribution from 1.4% to 6.9%,” LHI executive director and group CEO Tan Sri Lau Tuang Nguang commented in the result announcement.

“With a population of 115 million, we see potential for more long-term investment in the Philippines,” he added.

“While Malaysian operation’s results normalised from [1QFY2023’s] outstanding performance, Indonesia operations turned around from negative Ebitda to contribute positively,” LHI said, adding that its Vietnam and Philippines’ performance has continued to improve.

On prospects, the group expects to achieve satisfactory performance for the financial year ending Dec 31, 2024 (FY2024).

“Looking forward, we expect lower inflation, reduced interest rates and strong economic growth to boost demand for our products,” Lau noted.

Shares in LHI ended unchanged at 55 sen on Thursday, valuing the poultry group at RM2.03 billion.