Malaysia-headquartered poultry, egg, and livestock feed producer Leong Hup International reported a 6.4% year-on-year drop in second-quarter net profit, mainly due to weaker performance in Indonesia.
For the three months ended June 30, 2025 (Q2 2025), net profit stood at USD 19.4 million compared with USD 20.7 million a year earlier. Revenue fell 9.4% to USD 457 million from USD 506 million, according to Leong Hup’s filing.
Feed mill operations, a key revenue contributor, declined 15.5% to USD 178.5 million as selling prices in Indonesia weakened. Its livestock and poultry segment also recorded a 5.1% fall to USD 279 million, affected by lower selling prices and reduced volumes of day-old chicks (DOC), alongside weaker broiler prices in Indonesia.
Resilience in Malaysia
In contrast, operations in Malaysia showed resilience. Revenue grew on the back of higher sales volumes and prices of DOC, coupled with increased broiler sales volume, though partially offset by a drop in broiler selling prices.
Table egg prices also declined, but the impact was cushioned by stronger sales volumes.
Elsewhere in the region, operations in the Philippines delivered revenue growth, supported by higher selling prices and sales volumes of dressed chicken and broilers.
For the first half of 2025, Leong Hup’s net profit rose 25.5% to USD 41.2 million from USD 32.8 million in the same period last year, despite an 8.9% decline in revenue to USD 930 million.
2025 outlook
Looking ahead, Leong Hup said it remains cautiously optimistic about its full-year outlook.
“Opportunities for growth in chicken and egg consumption per capita remain high in the countries where we operate,” the group said.
Leong Hup added that margins should stay relatively stable given the current outlook for feed input costs, particularly corn and soybean meal.