LAYHONG 9385 Share Price

PBT has similarly recorded an increase of 424.44% or RM32.55 million from RM7.67million in FY2022 to RM40.21 million in FY2023. The increase was mainly attributed to increase contribution from all segments of the group’s business particularly the manufacturing of downstream chicken products. The chicken and egg subsidies introduced by the government of Malaysia received in FY2023 nonetheless has considerably supressed the substantial surge in input cost price for corn and soya bean meal. Moving forward, the Group would continuously seek new farming methods and automation to reduce cost, increase efficiency and to address the labour shortage issue facing the country. However, the Group would like to caution that the raw material cost of poultry feed namely corn and soya bean were traded at record high in addition to the chicken and egg ceiling price set by the government of Malaysia thus this will likely affect the Group’s profitability in the ensuing years ahead.

ILF segment recorded an increase of 2.59% or RM4.55 million from RM175.81 million to RM 180.36 million. The increase in revenue was due to the higher ASP of livestock and quantity being sold.

Despite the increase in revenue, the group recorded a LBT of RM8.24 million as compared to the immediate corresponding period of RM6.01 million PBT. This was due to the fair value adjustments on biological assets recognised and one-off revaluation loss on certain property, plant and equipment.

For the current quarter under review, integrated livestock farming recorded a higher revenue of RM172.85 million while retail business recorded an increase of 16.61% or RM9.03 million to RM63.37 million. However, food manufacturing revenue decline by 5.57% or RM6.17 million to RM104.58 million. The decline was because of normalisation of the consumers behaviours towards MCO where at the initial stage, there was a sudden bulk purchase by consumers.

A group pre-tax profit of RM2.25 million was recorded in current quarter compared to that of RM3.15 million in preceding quarter mainly due to higher rebate given to hypermarkets and higher spending on advertising and promotional expenses plus share of higher losses from an associate Company.