PETALING JAYA: Teo Seng Capital Bhd reported a net profit of RM12.05mil for its fourth quarter ended Dec 31, 2021, compared with a net loss of RM2.14mil in the previous corresponding period, mainly due to the improved selling prices of eggs.

       In a filing with Bursa Malaysia yesterday, the company said revenue during the fourth quarter grew to RM152.14mil from RM118.53mil a year earlier.

       “The group reported a remarkable financial performance in the quarter mainly due to a rebound in the selling prices of eggs.”

       Teo Seng added that the revenue growth was also spurred by the recovery of egg consumption, the enhancement of cost effectiveness, the uplifting of the fair value of biological assets and the sustainable contribution from the investment and trading of animal health-related products.

       For its financial year ended Dec 31, 2021, net profit dropped to RM3mil from RM4.19mil in the previous corresponding period, while revenue improved to RM530.14mil from RM478.28mil a year earlier.

       “Despite the group recording a higher revenue for the current period under review, the continued high commodity prices of raw materials such as maize and soybean had impacted the group to record a lower pre-tax profit of RM4.8mil for the period.”

       Backed by the gradual reopening of the economic and social sectors and the resumption of tourism, Teo Seng said it was optimistic that the demand for eggs would continue increasing.

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

       “The board of directors are confident to face this challenge by taking proactive action to widen its customer base through e-commerce, by retuning its business direction, diversifying marketing channels and mitigating the possible risk impact of the Covid-19 pandemic.”

       Teo Seng said its board was also more prudent in managing its financial resources and capital expenditure requirements. It continues to focus on production efficiency and cost effectiveness to sustain its financial performance and enhance competitive advantages, among others.