QL Resources' 1Q earnings surge on improvements in livestock, marine products sectors

QL Resources' 1Q earnings surge on improvements in livestock, marine products sectors
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KUALA LUMPUR (Aug 29): QL Resources Bhd’s net profit almost doubled to RM82.42 million for the first quarter ended June 30, 2022 (1QFY22), from RM42.19 million a year ago, lifted mainly by its integrated livestock farming and marine product manufacturing businesses. Earnings per share rose to 3.39 sen from1.73 sen.

Livestock farming was supported by improved selling price and government cost subsidy, which mitigated the rise in raw material prices, the poultry group said in a stock exchange filing.

Sale of its marine products, meanwhile, rose as business activities normalised after Malaysia entered the endemic phase of Covid-19. 

The group’s convenience store chain businesses also contributed stronger earnings, thanks to improved margin on better economies of scale after the increase of 51 new stores, while sales were driven by the reopening of the economy.

Quarterly revenue was 24% higher at 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 overall business performance will remain positive with the normalisation of economic activities and continued cost subsidy by the government to help to mitigate high farming costs.

This is despite uncertainties arising from prolonged Russia-Ukraine war, increased Sino-US political tension and heightened risk of global recession, triggered by aggressive interest rate hike, the group said.

Shares of QL closed three sen or 0.6% lower at RM5.07 on Monday (Aug 29), giving the group a market capitalisation of RM12.34 billion.

S Kanagaraju