PETALING JAYA: Teo Seng Capital Bhd returned to the black, with a net profit of RM4.16mil for the first quarter ended March 31, 2022 (1Q22), compared with a net loss of RM798,000 in 1Q21.

       During the quarter in review, the egg producer saw its revenue increase 27.6% to RM147.36mil from RM115.45mil in the corresponding quarter last year.

       Teo Seng said despite the revenue growth, the continued higher raw material price remained a challenge.

       In a filing with Bursa Malaysia, the group said its poultry farming segment recorded a surge in revenue by RM28.6mil, up 29.5% year-on-year, resulting from improved selling prices of eggs.

       “Nevertheless, the continued higher feed cost had impacted the group’s financial performance and pre-tax profit of RM1.2mil was mainly derived from the sales of old hens for the period under review,” it said.

       As for its investment and trading segment, Teo Seng said there was a slight increase in revenue of RM3.4mil and a sustainable pre-tax profit of RM2.5mil due to the stable demand and sustainable contribution for the period under review.

       The group said in view of the uncertain market conditions, the remaining nine months to its financial year ending Dec 31, 2022, would remain challenging.