KUALA LUMPUR (Aug 22): Teo Seng Capital Bhd saw a more than six-fold rise in net profit to RM25.4 million for the second quarter ended June 30, 2023 (2QFY2023), from RM3.93 million a year ago, boosted by improved egg prices and higher sales quantity.

The quarterly net profit exceeded even the full-year net profit of RM21.64 million in FY2022.

The jump in the 2QFY2023 earnings was also due to subsidies provided by the government, which cushioned the impact of high feed costs, said the poultry farming group.

Earnings per share improved to 8.65 sen from 1.34 sen in 2QFY2022, the group said in its bourse filing on Tuesday (Aug 22).

Quarterly revenue, meanwhile, increased 12.93% to RM177.74 million, from RM157.39 million a year ago.

No dividend was declared during the quarter under review.

For the first six months of FY2023, net profit surged by more than five-fold to RM45.08 million, from RM8.09 million last year, as revenue expanded 18.5% to RM361.14 million from RM304.75 million.

Looking ahead, Teo Seng said the challenges posed by food inflation and the high cost of raw materials such as maize and soybean continue to impact the poultry industry.

Nonetheless, with the improved market conditions and continuous proactive implementation of strategies, the group expects to continue to derive satisfactory financial results for the remaining period of FY2023.

Teo Seng's share price closed down one sen or 0.92% to RM1.08, bringing the group a market capitalisation of RM324 million. Year-to-date, the stock has rallied 45% from 74.5 sen.