KUALA LUMPUR (Aug 28): Agro-food producer QL Resources Bhd's net profit rose 15.3% to RM50.55 million in its first financial quarter ended June 30, 2019 (1QFY20) from RM43.86 million a year ago, on higher contribution from its marine product manufacturing (MPM) business segment.

As a result, its earnings per share improved to 3.12 sen for 1QFY20 compared with 2.7 sen for 1QFY19.

Quarterly revenue grew 21.7% to RM993.21 million from RM816.18 million a year ago.

In an exchange filing today, QL Resources said its MPM segment showed sales and earnings growth of 30% and 52% respectively during the quarter under review, mainly due to higher contribution from fishmeal and surimi-based products.

Its integrated livestock farming segment also saw a 22% year-on-year (y-o-y) rise in sales for 1QFY20, thanks to higher sales contribution from Indonesia, Sabah and Sarawak poultry units, as well as its FamilyMart business. Earnings, however, fell 19% y-o-y due to lower margins from feed raw material trade, as well as lower contribution from regional poultry operations.

Palm oil activities' sales for 1QFY20 fell 5% y-o-y, mainly due to selling of month-end stocks. Quarterly earnings were down significantly against corresponding quarter due to lower crude palm oil price, which dropped 17% y-o-y to RM1,964 per tonne in 1QFY20 versus RM2,364 per tonne in 1QFY19.

Nonetheless, QL Resources management is confident that FY20 performance will be better than FY19.

The stock finished two sen or 0.29% lower at RM6.90 today, bringing a market capitalisation of RM11.2 billion.