KUALA LUMPUR (Nov 21): Teo Seng Capital Bhd is set to post a record high annual profit for FY2023, as the egg producer's third quarter profit for the three months ended Sept 30 (3QFY2023) surged by more than 84 times to RM43.83 million from RM516,000 a year ago, boosted by higher average selling price and sales quantity of eggs.
The 3QFY2023 net profit is already more than double the group's full-year net profit of RM21.64 million in FY2022, its bourse filing showed. It is the highest quarterly profit recorded since the group's listing in 2008. Its previous highest quarterly net profit was RM25.4 million, achieved in the months of April to June under 2QFY2023.
The egg producer said subsidies from the government, which cushioned the impact of high feed costs, also contributed to the surge in quarterly earnings.
Quarterly revenue rose 20.1% to RM199.99 million from RM166.68 million in 3QFY2022.
For the nine months ended Sept 30, 2023 (9MFY2023), Teo Seng's net profit jumped to RM88.92 million, more than 10 times the RM8.61 million it made in the same corresponding period last year — and already higher than the group's previous highest annual profit of RM58.84 million recorded in FY2019 — while revenue rose 19.1% to RM561.13 million from RM471.32 million.
For the remaining three months of FY2023, Teo Seng said the high interest rate around the globe and the depreciation of the ringgit will continue to pose challenges for the poultry industry. However, its board is positive that the group will continue to deliver sustainable financial results, with the expertise of its management team and the proactive implementation of strategies.
"The board shall continue to focus on operation efficiency and cost effectiveness to sustain its financial performance and enhance competitive advantages," Teo Seng added.
Teo Seng's share price closed three sen or 2.11% higher at RM1.45, bringing the group a market capitalisation of RM435.01 million. Year-to-date, the stock has rallied 85.9% from 78 sen on Jan 3.