Teo Seng Capital returns to the black in 4Q

KUALA LUMPUR: Teo Seng Capital Bhd returned to the black with a net profit of RM12.05mil for the fourth quarter ended Dec 31, 2021 (4Q21) from a net loss of RM2.14mil, thanks to the improved selling price of eggs.

Quarterly revenue rose 28.4% to RM152.1mil from RM118.5mil a year ago.

“The group reported a remarkable financial performance in this quarter mainly attributed by rebounded egg selling price along with the recovery of egg consumption, enhancement of cost-effectiveness, uplift of the fair value of biological assets and sustainable contribution from segments of Investment and trading of animal health related products,” Teo Seng said in a statement.

For the full financial year ended Dec 31, Teo Seng posted a net profit of RM3mil on revenue of RM530.14mil.

Backed up by a gradual reopening of economic and social sectors, as well as the resumption of tourism, Teo Seng is optimistic that the demand for eggs is continuously increasing.

“However, the continued high commodity prices of maize and soybean meal materially increased the cost of production and they are the adverse industrial impacts and challenge towards the poultry industry.

“The board of directors are confident to face this challenge by taking pro-active actions to widen its customer base through e-commerce, retune its business direction, diversify marketing channels and mitigate the possible risk impact on Covid-19 pandemic,” it said.