Teo Seng's 2Q net profit soars on higher egg prices, subsidies
Teo Seng Capital Bhd experienced a significant increase in net profit to RM25.4 million during the second quarter, which ended on June 30, 2023. This figure is more than six times higher than the RM3.93 million earned during the same period last year. The company's profits were driven by better egg prices and an increase in sales volume.
The profit for the three-month period surpassed the profit achieved for the entire year of RM21.64 million in FY2022.
The poultry farming group stated that the increase in earnings during the second quarter of the fiscal year 2023 was also a result of government aid. This financial support helped alleviate the negative effects of expensive feed expenses.
According to the group's official statement on Tuesday (Aug 22), there was a significant increase in earnings per share, rising to 8.65 sen from 1.34 sen in 2QFY2022.
In the latest report, the revenue for the quarter grew by 12.93% to RM177.74 million, up from RM157.39 million in the same period last year.
During the period being reviewed, there was no distribution of profits to shareholders in the form of a dividend.
During the initial half of FY2023, the company experienced a remarkable increase in net profit, growing over five times to reach RM45.08 million. This is a significant improvement compared to the previous year's net profit of RM8.09 million. Furthermore, revenue also displayed growth, expanding by 18.5% to RM361.14 million, surpassing last year's revenue of RM304.75 million.
Moving forward, Teo Seng expressed that the poultry industry is still facing obstacles due to food inflation and the exorbitant prices of essential resources like maize and soybean.
However, due to the positive changes in the market and the consistent efforts to implement proactive plans, the company anticipates achieving favorable financial outcomes for the rest of FY2023.
Teo Seng's stock price ended the day lower by one sen or 0.92% at RM1.08, resulting in a market value of RM324 million for the company. So far this year, the stock has experienced a strong upward movement of 45% starting from 74.5 sen.
