Teo Seng Sees Revenue Up 33%, Egg Business Suffers RM1.3 Million Loss

Teo Seng Capital’s quarterly revenue jumped 33.4% in the second quarter ended 30 June 2022 to RM 157.4 million from RM118 million in the corresponding quarter last year. The Group delivered an improved quarterly pre-tax profit of
RM2.5 million, representing an increase of 117.7% compared with pre-tax loss of RM13.9 million a year ago.

The segment of Poultry Farming recorded higher revenue of RM33.2 million or equivalent to 33.9% of the increase due to the improved selling price of eggs. Nevertheless, the continued higher feed cost with the cushion of egg subsidy from the government had resulted in the segment recording a pre-tax loss of RM1.3 million for the period under review.

Meanwhile, the revenue of the segment of Investment and Trading of Poultry Related Products reported an increase in revenue by RM6.2 million and a sustainable pre-tax profit of RM3.7 million, representing a decline of 46.2% in pre-tax profit due to the gain on disposal of right-of-use asset in preceding year corresponding quarter.

Compared to the previous quarter’s revenue of RM147.4 million, the Group posted a higher revenue of RM157.4 million representing 6.8% increase in revenue mainly due to an increase in sales quantity of eggs in the domestic market.

The Group registered a decline in pre-tax profit by RM1.3 million or equivalent to 34.1% from RM3.7 million in the previous quarter as a result of continued higher production costs in the current quarter.

The business activities and economy are expected to continue their progressive recovery and it will improve optimism that the demand for eggs is continuously increasing in domestic and overseas markets. However, the continued high commodity prices of maize and soybean meal materially increased the cost of production which are the adverse industrial impacts and
challenge towards the poultry industry.

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