KUALA LUMPUR (May 19): Hup Seng Industries Bhd’s net profit for the first quarter ended March 31, 2021 (1QFY21) rose 1.65% to RM9.87 million, from RM9.71 million a year ago, on higher sales and lower operating expenses.

In tandem with the higher sales, revenue grew 2.31% to RM82.75 million from RM80.88 million, the group said in its filing to Bursa Malaysia.

The biscuits maker said domestic sales grew 8% or RM4.8 million compared a year earlier, mainly from wholesale and retail channels.

However, the export market saw a decline of about 15% or RM2.9 million, primarily due to a decrease in export of biscuits to Saudi Arabia and Myanmar.

“Despite higher sales recorded and lower operating expenses during the current quarter, the higher input costs, notably certain raw material prices, have been on the uptrend which depressed the overall margin of the group,” the group said.

On a quarter-on-quarter basis, Hup Seng’s net profit slipped 0.57% from RM9.93 million in 4QFY20, mainly due to lower sales recorded and higher costs of certain raw materials.

Revenue, meanwhile, dropped 5.69% from RM87.74 million, following a reduction of 27% or RM6.1 million from export markets due to global shortage of shipping containers and higher freight charges.

Hup Seng did not declare any dividend for 1QFY21.

Expecting the current year to be full of challenges and uncertainties, the group said it remains optimistic and cautious about the prospects of the biscuits industry.

Hup Seng's share price closed 0.5 sen or 0.53% lower at 94 sen, valuing the group at RM756 million.