KUALA LUMPUR (Sept 20): Hup Seng Industries Bhd (HSIB) said today the Covid-19-driven temporary suspension of the biscuit maker's operations is expected to result in production volume loss of about 3% of the manufacturer's annual output volume as the company disinfects the premises of one its subsidiaries.

In a statement to Bursa Malaysia today, HSIB said its wholly-owned subsidiary Hup Seng Perusahaan Makanan (M) Sdn Bhd (HSPM), which is located at the Tongkang Pecah Industrial Area in Batu Pahat, Johor, had yesterday (Sept 19) received a notice from the Ministry of Health (MoH) to temporarily suspend its operations until Sept 30, 2021 for the purpose of carrying out disinfecting exercise on its entire premises.   

"At this moment, HSIB is unable to quantify or determine the impact of this temporary suspension on its (HSIB) financial performance,” HSIB said.

HSIB had also not specified the annual production volume of the group.

"Delay in the delivery of goods to its local and export customers is anticipated and the management is currently in discussion with the customers to reschedule the delivery of these orders.

"HSPM is cooperating and working closely with the MoH and taking mitigating steps to contain the spread of Covid-19 at the premises to safeguard the safety and well-being of our employees. Subject to further directive from the MoH, HSPM expects to resume its operations after Sept 30, 2021,” HSIB said.

At Bursa’s 12:30pm break today, HSIB’s share price settled unchanged at 94.5 sen for a market value of RM756 million.

HSIB has 800 million issued shares, according to the company’s latest quarterly financial report.

For the second quarter ended June 30, 2021 (2QFY21), HSIB said net profit fell to RM3.58 million from RM8.76 million a year earlier while revenue dropped to RM66.5 million from RM71.44 million.

For 1HFY21, HSIB said cumulative net profit fell to RM13.45 million from RM18.47 million a year earlier while revenue was lower at RM149.24 million versus RM152.32 million.