QAF profit rises 101% to S$22.6m in H2

MAINBOARD-LISTED QAF posted a 101 per cent rise in net profit to S$22.6 million for the second half of the year ended Dec 31, 2023, from S$11.2 million in the previous corresponding period.

This comes as the group increased sales from its bakery segment, driven by underlying growth across all its core markets, the multi-industry food company said in a regulatory filing on Friday (Feb 23).

It also recorded a profit of S$1.6 million from its joint venture (JV), Gardenia Bakeries, in H2 FY2023, reversing from losses of S$1.1 million in H2 FY2022.

Revenue for the second half of FY2023 rose 6 per cent to S$327 million, from S$307.1 million in the year-ago period.

This was partly due to higher revenue from its distribution and warehousing segment, and higher interest income from high interest rates.

Earnings per share stood at 4.8 Singapore cents for FY2023, up from 4.5 Singapore cents the previous year.

A final dividend of four Singapore cents per share was proposed for the full year in FY2023, unchanged from the year before. The date payable will be announced later.

For the full year ended Dec 31, 2023, net profit was up 7 per cent to S$27.5 million. Revenue was up 9 per cent to S$628.6 million. The group said that it was impacted by higher costs of labour, key raw material and electricity in the past year.

However, it will continue to improve efficiency, optimise manufacturing capacity and improve cost management.

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“Our focus remains on stable revenue growth by increasing our distribution routes and channels, developing new products, and making strategic pricing and product mix adjustments to strengthen our competitive position,” said QAF.

It added it will continue to grow trading activities, with a focus on long-shelf-life products, and seek opportunities to expand into new regions.

Shares of QAF closed up 1.2 per cent or S$0.01 to S$0.86 on Friday, before the results announcement.