Teo Seng profit surges

  • Corporate News
  • Thursday, 21 Nov 2019

PETALING JAYA: Teo Seng Capital Bhd has posted a stellar 245% jump in net profit to RM45.22mil year-on-year for the nine-month period ended Sept 30 from RM13.1mil.

Its poultry farming segment itself saw a remarkable growth in profit before tax by 397% to RM53.64mil.

Revenue also increased by 20% to RM410.14mil from RM343.06mil, mainly from the rebounded selling price of eggs and higher sales quantity, supported by a better and more sustainable production efficiency.

For Teo Seng’s investment and trading segment, its revenue went up 7% for the period to RM48mil on the back of a stable demand of animal health products.

Its results for the third quarter ended Sept 30 has more than doubled to RM18.05mil year-on-year or increased 157% from RM7.02mil in the preceding year’s quarter.

Its quarterly revenue rose 10.47% to RM138.38mil from RM125.26mil in the corresponding quarter last year.

During the quarter, Teo Seng directly penetrated the Sabah and Sarawak market for the trading of animal health products via the acquisition of a trading company, Professional Vet Enterprise Sdn Bhd.

The company is involved in the trading of veterinary pharmaceutical, biological products and farming equipment. Teo Seng’s expansion into the sales territory of animal health products in Sabah and Sarawak to enhance its future earnings.

Meanwhile, the group has declared a single-tier dividend of 2 sen per ordinary share, which works up to approximately RM6mil in the third quarter.

Cumulatively, Teo Seng has rewarded its shareholders with a total dividend of 5 sen per share, equivalent to RM15mil, representing 33% of its net profit for the nine-month period ended Sept 30.

The dividend payout is in line with its dividend of 20%-50% of its net profit.

In its filing with Bursa Malaysia yesterday evening, the board expressed its satisfaction over the financial performance of the group for the remaining three months period for the year in view of its stable feed cost and effective cost management.

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