Rising Costs and Taxes Lower Teo Seng’s Q3 Net Profit by 77%
KUALA LUMPUR (November 15): Teo Seng Capital Bhd’s net profit plunged 77.34% to RM516,000 in the third quarter ended September 30, 2022 (3QFY22), from RM2.28 million in the same quarter a year ago one year, driven by higher operating expenses, financial expenses and tax expenses.
This was due to a 15.26% increase in revenue to RM166.58 million from RM144.53 million a year earlier, according to the stock market filing of the poultry farming company.
Teo Seng’s operating expenses increased by 27% year-on-year (year-on-year) to RM174.08 million in 3QFY22 from RM137.14 million, while financial expenses increased by 10% year-on-year from RM1.6 million to RM1.76 million.
Tax charges also jumped to RM5.42 million, a huge jump of 53.17% from RM3.54 million in 3QFY21.
As a result, its earnings per share fell to 0.18 sen per share in 3QFY22, from 0.77 sen per share.
For the cumulative nine months ended September 30, 2022 (9MFY22), Teo Seng recorded a net profit of RM8.61 million compared to a net loss of RM9.05 million in 9MFY21, while cumulative revenue increased by 24.69% to reach RM471.32 million, from RM378 million previously.
Given the high cost of animal feed and government egg subsidy, the directors of the company are of the view that financial performance remains challenging for the remaining three-month period ending December 31, 2022 (4QFY22 ).
Shares of Teo Seng closed down 0.5 sen or 0.63% at 79 sen on Tuesday (November 15th), giving it a market capitalization of RM237 million.