Teo Seng remains cautiously optimistic about its future business performance.
PETALING JAYA: Teo Seng Capital Bhd
is reaffirming its commitment to strengthening its core competency in integrated layer farming, alongside its investment business and trading of poultry-related products moving forward.
The group said given the stable demand for eggs as a primary protein source and the increasing egg consumption in Malaysia, it sees strong prospects for continued capacity expansion and market growth.
Reporting that it is actively working on expanding production capacity to meet rising demand, Teo Seng said this is in tandem with several initiatives in the pipeline.
Releasing its results for the third quarter ended Sept 30 (3Q24) yesterday, the group charted a net profit of RM58.1mil, marking a 32.4% year-on-year (y-o-y) increase over the corresponding quarter of last year, despite revenue seeing a slight decrease of 4.8% to RM190.3mil for the three months in review.
Meanwhile, Teo Seng posted a net earnings of RM118.5mil for the nine months ended September (9M24), representing a growth of RM29.6mil or 33.2% y-o-y climb from RM88.9mil in the corresponding periof last year, as turnover also increased marginally to RM565.4mil.
Analysing its results, the group said in a statement that the improvement in profits is attributed to enhanced productivity, cost efficiencies, and stable feed costs in its poultry farming segment.
“At the same time, our investment and trading of poultry-related products segment reported a significant revenue of RM27.9mil, with pre-tax profit climbing 1.5 times to RM3.3mil, driven by increased demand for animal health products,” it added.
Compared with the preceding three months ended June 30, Teo Seng also recorded a 2.9% increase in revenue from RM185mil, which it said was driven by improved egg prices, higher sales volume and sustained contributions from the animal health products segment.
It noted that sequential net earnings surged by 119.9% from RM26.4mil in the previous quarter, reflecting the group’s efforts in continued financial and operational improvements.
In light of its strong 3Q24 results, Teo Seng’s board of directors declared a third interim single-tier dividend of four sen per share, amounting to a RM11.9mil payout.
“This represents 20.5% of the net profit for the current financial quarter. Cumulatively, dividends for 9M24 stand at 9.5 sen per share, totalling RM28.3mil, representing 23.9% of net profit,” it said.
Incidentally, the 9M24 dividend payout is a close to a five-fold improvement from the two sen dividend it announced for the corresponding nine months of last year.
Despite facing uncertain global economic challenges marked by inflationary pressures, Teo Seng remains confident in its resilience.
It said its expert management team and commitment to environment, social, and governance principles position it well for sustainable growth and value creation for all stakeholders.
“Barring any unforeseen circumstances, we remain cautiously optimistic about our future business performance, underscoring our focus on capitalising on growth opportunities and commitment to delivering sustainable returns for all of our stakeholders,” it said.
