Teo Seng Q4 Profit Surge 978% As Egg Prices Improve

Teo Seng Capital Berhad booked 978% increase in pre-tax profit at RM11.5 million for Q4 ended December 2021, from RM1.1 million in the previous corresponding quarter, attributing mainly to the improved selling price of eggs.

Quarterly revenue rose 28.4% to RM152.1 million from RM118.5 million a year ago. The Group reported a remarkable financial performance in this quarter mainly attributed to rebounded egg selling price along with the recovery of egg consumption, enhancement of cost-effectiveness, uplift of fair value of biological assets, and sustainable contribution from a segment of Investment and Trading of Animal Health Related Products.

For the Current Quarter vs Previous Quarter (Q4FY21 vs Q3FY21) Compared to the preceding quarter, the Group’s revenue in Q4FY21 increased by RM7.6 million from RM144.5 million in the previous quarter to RM152.1 million, equivalent to 5.3% of growth, the pre-tax profit of the Group jumped 97% to RM11.5 million as compared to a pre-tax profit of RM5.8 million in the previous quarter.

Teo Seng added that the improvement was backed up by a gradual reopening of economic and social sectors, as well as the resumption of tourism, it is optimistic that the demand for eggs is continuously increasing. However, the continued high commodity prices of Maize and Soyabean meal materially increased the cost of production and they are the adverse industrial impacts and challenge towards the poultry industry. The Board of Directors is confident to face this challenge by taking proactive actions to widen its customer base through E-commerce, retune its business direction, diversify its marketing channel and mitigate the possible risk impact on Covid-19 pandemic.

An essential staple in Malaysia, chicken eggs will continue to be in demand for all seasons, following the country’s National Recovery Plan, the outlook of the poultry industry is bright for integrated egg producers incorporating environmental, social, and governance (ESG) framework in their business strategies in order to promote and achieve sustainability.

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