Thursday 28 Mar 2024
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KUALA LUMPUR (May 15): Hup Seng Industries Bhd's net profit fell 4.14% to RM11.11 million in the first quarter ended March 31, 2018, from RM11.58 million a year ago, on higher operating and input costs.

Earnings per share dropped to 1.39 sen from 1.45 sen, the biscuit maker said in a filing with Bursa Malaysia.

Quarterly revenue, however, rose 4.45% to RM77.15 million from RM73.85 million previously, on stronger domestic demand.

"Domestic sales grew by 6% mainly from modern channel with biscuits being the major contributor (while) export sales grew marginally by 1%, impacted by the strengthening ringgit," the group said.

Hup Seng is cautiously optimistic of its performance for the rest of the year, noting that the operating environment is expected to remain highly competitive.

"The group witnessed some margin compression arising from costs pressures and unfavourable impact of currency amid continued growth in revenue.

"Nevertheless, the group will continue its efforts to enhance operating efficiency programmes to mitigate as much as possible the impact of higher input costs," Hup Seng said.

The group added it will continue to focus on improving its performance by innovating products portfolio, broadening the distributor network to safeguard its revenue and profitability.

Hup Seng's share price closed down 2 sen or 1.7% to RM1.16, giving a market capitalisation of RM928 million.

 

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