KUALA LUMPUR: Teo Seng Capital Bhd made a loss in the three-month ended Dec 31 on "depressed" egg selling prices, which more than offset gains from the lower operating cost it achieved during the quarter.
The poultry company expects another tough year ahead due to the Covid-19 restrictions.
"The Covid-19 pandemic continued to impact the egg consumption especially in restaurants, hotels and school canteens," it said in a statement today.
Teo Seng Capital made a net loss of RM2.1mil on revenue of RM118.5mil in the lats quarter of 2020.
For the full year, it reported a net profit of RM4.2mil compared with RM58.8mil made in the previous year.
"The Board of Directors are confident to face this challenge by taking pro-active actions to widen its customer base and mitigate the possible risk impact on Covid-19 pandemic," it said.
Teo Seng Capital also reiterated its view that the tough operating environment may force the industry to consolidate.
"Those local farmers who are lack of competitive advantages may opt to phase out from the market, defer or cancel their expansion plans," it said.
"We are committed that improving efficiency across the whole organisation will lead us to achieve better performance in year 2021," it added.