KUALA LUMPUR (Aug 24): Chicken egg producer LTKM Bhd reported today a first quarter net loss at RM8.4 million versus net profit of RM510,000 a year earlier, on lower sales volume and average egg prices.

In a statement to Bursa Malaysia, LTKM said revenue fell to RM27.92 million in the first quarter ended June 30, 2020 (1QFY21) from RM48.25 million.

"Revenue for the group dropped by 42% due to lower sales volume and average egg prices. Consequently, the group recorded a loss net of tax of RM8.40 million due to the drop in revenue cushioned by lower loss in fair value of biological assets, as compared to the same quarter of the previous year," LTKM said.

In quarterly terms, the group said 1QFY21 loss before tax narrowed to RM8.06 million from loss before tax at RM10.45 million in the preceding quarter.

"Revenue decreased by 24% due to lower sales recorded by the poultry segment, as a result of lower sales volume. However, the group recorded lower loss before tax as compared to the previous (preceding) quarter due to higher fair value loss of biological assets recorded in the previous quarter," LTKM said.

Looking ahead, LTKM said it foresees its business continuing to be challenging due to industry volatility that affects average egg prices.

"Recovery in egg prices have been short-lived and its sustainability depends on various factors including consumption driven by economic activities and level of industry output," the firm said.

At 5pm today, LTKM's share price closed down two sen or 2.08% at 94 sen, which values the company at RM122.3 million. The stock saw 10,000 shares traded.

Editing by Chong Jin Hun