Teo Seng Capital Bhd’s pre-tax profit surged 238% to RM57.8 million for the fourth quarter ended 31 December 2023 (Q4FY23) compared to RM17.1 million from the same quarter the previous year.
“For the current quarter, Teo Seng registered revenue of RM199.9 million, an increase of 10.6% as compared to revenue of RM180.6 million registered in the corresponding quarter of previous financial year,” it said in a Bursa filing today (Feb 20).
The egg producer said for full financial year ended 2023 (FY23), it registered an increase of 4.5 times pre-tax profit to RM162.7 million and 16.7% increase in revenue of RM761 million compared to RM652 million in the previous year (FY22).
“For the Poultry Farming segment, revenue recorded at RM175.2 million and pre-tax profit increase by RM58.3 million to RM72 million attributed by better selling price and higher sales quantity of eggs coupled with egg subsidy granted by government.”
Meanwhile, Investment and Trading of Poultry Related Products segment registered revenue of RM24.6 million, a slight decrease of 3.7% from RM25.6 million of corresponding quarter of previous year.
“Pre-tax profit declined by RM0.4 million as compared with corresponding quarter of previous year. For the current quarter, the group recorded a pre-tax profit stand of RM75 million compared with previous quarter of RM40.6 million (Q3FY23).
“Improvement in pretax profit was attributed by the improved sales quantity of eggs and subsidy received from government,” it added.
The group said it is going to continue to focus on its core competency, which is production efficiency supported by integrated layer farming model.
“We believe that our products remain favorably positioned, driven by eggs as one of the most widely available and affordable sources of protein and the growing population of the country.
“These factors present opportunities for the group to pursue further capacity expansion to meet the increasing demand,” it said.
Teo Seng said despite facing a challenging global landscape, including continuous interest rate hikes, persistent US-China trade tensions, and inflationary pressures, the group remains confident and perseverant in tackling these challenges.
“This confidence is attributed to our well-expertised management team and the incorporation of the environment, social, and governance (ESG) framework into our business strategies.
“Barring any unforeseen circumstances, the Board is cautiously optimistic about the group’s future performance, driven by ongoing expansion and a commitment to delivering sustainable returns for all of our stakeholders,” it added.
