KUALA LUMPUR (August 29): QL Resources Bhd’s net profit nearly doubled to RM82.42 million for the first quarter ended June 30, 2022 (1QFY22), from RM42.19 million a year ago , primarily through its integrated breeding and marine product manufacturing businesses. Earnings per share fell from 1.73 sen to 3.39 sen.
Breeding was supported by improved selling prices and the government cost subsidy, which mitigated rising commodity prices, the poultry group said in a stock market filing.
Sales of its marine products, meanwhile, increased as business activities normalized after Malaysia entered the endemic phase of Covid-19.
The group’s convenience store chain business also contributed to stronger profits, thanks to improved margin on better economies of scale after the increase of 51 new stores, while sales were pulled by reopening the economy.
Quarterly revenue increased 24% to RM1.52 billion from RM1.22 billion in 1QFY21.
The group did not declare a dividend for the quarter.
Going forward, QL is optimistic that the company’s overall performance will remain positive with the normalization of economic activities and the continued cost subsidy by the government to help mitigate high agricultural costs.
This is despite the uncertainties stemming from the protracted war between Russia and Ukraine, heightened Sino-US political tensions and heightened risk of a global recession, triggered by an aggressive rise in interest rates, said the band.
QL shares closed three sen or 0.6% lower at RM5.07 on Monday (August 29), giving the group a market capitalization of RM12.34 billion.