KUALA LUMPUR (June 30): Teck Guan Perdana Bhd recorded a net loss of RM2.61 million in 1QFY23, 70.6% more than the RM1.53 million it recorded in the corresponding quarter last year, following a sharp drop in revenue and the recognition of net fair value loss on forward currency contracts that amounted to RM4.29 million.

The palm oil and cocoa products manufacturer's quarterly revenue fell 40.94% to RM32.83 million from RM55.59 million, mainly because of lower sales volume and selling price. Loss per share widened to 6.52 sen, from 3.82 sen previously.

Compared with the immediate preceding quarter of 4QFY22, Teck Guan fell into the red from a net profit of RM17.23 million, as revenue slumped 89.9% from RM325.24 million.

Teck Guan said the palm-based products' market remains challenging, as it has been affected by the Indonesian government's recent attempt to control the domestic supply of vegetable and edible oils, which caused prices to leap amid uncertainties in a rapidly evolving global economy.

Nevertheless, Teck Guan remains cautiously optimistic on the long term prospects of the palm-based industry, despite volatile price movements of commodities, rising production costs and the labour shortage situation in Malaysia.

“The group will continue to focus on enhancing productivity and operating cost efficiency, so as to achieve sustainable growth,” it said.

Teck Guan shares closed 12 sen or 9.6% higher at RM1.37 on Thursday (June 30), giving the group a market capitalisation of RM54.93 million.