The manufacturer and distributor of animal health and nutrition products, posted strong revenue growth for its first quarter ended 31 March 2022 (Q1FY2022), where its top line grew by 29.43% to RM76.09 million from RM58.79 million a year ago.
The higher revenue was mainly due to improved sales of commodities, vitamin and minerals, and amino acid.
The distribution division recorded an impressive 54.70% year on year increase in revenue to RM48.86 million, in line with the surge in commodity prices, in Q1FY2022. The division accounted for 64.22% of the Group’s Q1FY2022 total revenue. The remaining RM27.22 million revenue came from the manufacturing division.
Meanwhile, net profit for Q1FY2022 was RM4.91 million from Q1FY2021’s RM4.94 million, impacted by higher cost of sales and packaging materials as well as freight and forwarding costs caused by global supply chain challenges. The balance sheet of the company remained healthy with a net cash position of RM29.10 million and a gearing ratio of 0.03 times.
“While our profit margins have been impacted by increased material plus freight and forwarding costs, we are confident of maintaining our profitability in FYE2022. As we are in a relatively recession proof industry, we aim to leverage on our strong track record and position as a one-stop solutions provider for the livestock industry to continue growing the Group’s financial performance going forward,” Yenher group managing director, Cheng Mooh Tat said.
“As the border reopened in May 2022, we have assigned our teams to engage with existing and potential customers overseas to strengthen our market presence in the region. We are currently in the midst of obtaining the necessary certifications to distribute proprietary products in regional countries,” he added.
Principally involved in the manufacturing and distribution of animal health and nutrition products, to complement and support the sales of manufactured and distribution products, Yenher also provides value-added diagnostic and material analyses services as well as complimentary consulting services. Its customers are mainly farmers, feed millers as well as livestock integrators operating in the poultry and swine livestock subsectors.
Yenher has also expanded its customer network to the international markets by appointing four distributors in Indonesia, Nigeria, Pakistan and South Korea. In 2020, the Group established a branch in Taiwan to venture into the distribution of animal health and nutrition products in the country.
