Lay Hong Berhad,a Bursa Malaysia Main Market listed integrated poultry company, registered a net profit of RM12.2 million for its second quarter financial year ending March 31, 2018 (“2QFY2018”), representing an increase of four times from RM3.5 million in the corresponding period last year. Its revenue stood at RM204.6 million, a 20% increase as compared to RM170.9 million a year ago.
A filing to Bursa Malaysia shows that the increase of revenue and net profit for its year-on-year results for the integrated livestock farming division was mainly due to higher quantity of eggs sold, as well as higher quantity and price of processed frozen products and pasteurized liquid eggs sold in 2QFY2018. For the retail supermarket division, the result was attributable to the opening of 3 additional outlets in Pitas, Ranau and Tambunan.
For the 6-month financial period ending March 31, 2018 (“6MFY2018”), the Company registered a revenue of RM387.6 million, which represents a 17% increase from RM329.9 million a year ago. Its net profit stood at RM16.6 million, 4 times increase from RM3.9 million in the corresponding period last year.
In a statement, Lay Hong Berhad Group Executive Director Yap Chor How said: “The collaboration with Japan NH Foods Ltd has marked a major step forward for the Company's chicken product manufacturing business, in the form of new product development and market penetration. To date, a total of 11 products have been launched and the response has been encouraging. The Company is continuously researching on the viability of new products to be developed and introduced to our production line. It is expected that new products will be launched in the future.”
“Besides that, our plan to expand our processed food production capacity is intact. A piece of industrial land in Selangor Halal Hub, Pulau Indah has been identified for the plant to be set up and we are currently working on the factory and machinery layout. This is expected to be the site for the JV with NH Foods,” Yap added.
Organically, the Company is targeting to increase the current production capacity of 2.3 million eggs per day to 3 million eggs per day in the near future, while the capacity for its broiler division shall be increased from 1 million birds per month to 2 million birds per month.
“The expansion of the upstream segment will be catered to the growing demand of downstream food products, such as pasteurized liquid egg and functional egg, as well as the increasing demand in our food processing division from the collaboration with NH Foods Ltd,” Yap said.