Teo Seng posts RM4 mil net profit for 2Q on improved contribution from poultry farming segment
KUALA LUMPUR (Aug 16): Teo Seng Capital Bhd posted a net profit of RM3.93 million for the second quarter ended June 30, 2022 (2QFY22) against a net loss of RM10.53 million in the same period a year ago on improved contribution from its poultry farming segment.
Earnings per share amounted to 1.34 sen against a loss per share of 3.58 sen for the same period last year, its Bursa filing showed on Tuesday (Aug 16).
Quarterly revenue rose a third to RM157.39 million from RM118.02 million in the same period last year as the group's poultry segment reported a higher revenue of RM256.2 million, representing an increase of 31.7%, resulting from the continued improving selling prices of eggs.
Even so, the continued higher feed cost — albeit with the government's egg subsidy — still resulted in the segment recording a pre-tax loss of RM56,000 for the period under review, it said.
On a quarterly basis, Teo Seng's net profit slipped by 5.48% from RM4.16 million despite revenue rising by 6.8% from RM147.36 in 1QFY22, mainly due to an increase in the quantity of eggs sold in the domestic market.
"Despite the egg subsidy provided by the government and better contribution from the segment of animal health products, the group still recorded a slight decrease in pre-tax profit by RM1.3 million, representing a decrease of 34.1%, as a consequence of the continued higher production cost in the current quarter," it said.
For the cumulative first half ended June 30, 2022 (1HFY22), Teo Seng made a net profit of RM8.09 million against a net loss of RM11.33 million in the previous year even though revenue grew 30.53% to RM304.75 million from RM233.47 million last year.
Looking ahead, Teo Seng said 2HFY22 would remain challenging in terms of financial performance given the uncertain market conditions.
Teo Seng's share price closed half a sen or 0.63% lower at 78.5 sen on Tuesday, for a market capitalisation of RM235.5 million.
Source: The Edge Market
