KUALA LUMPUR: QL Resources Bhd, which saw its net profit almost double to RM82.42mil in the first quarter ended June 30, 2022 (1Q22), is optimistic its overall business performance will remain positive with the normalisation of economic activity in Malaysia.
“Management is optimistic that the overall performance will remain positive with the normalisation of economic activities and continued cost subsidies by the Malaysian government, to help to mitigate high farming costs,” the integrated agro-based group said in its filing with Bursa Malaysia yesterday.
QL’s revenue for the quarter jumped 24.2% to RM1.52bil from RM1.22bil in the same period last year, while earnings per share rose to 3.39 sen versus 1.73 sen a year.
QL said its marine product manufacturing (MPM) sales increased by 23% in the quarter compared to the corresponding quarter, mainly due to higher sales volume and improved selling prices for all activities, with all fishing fleets resuming fishing operations and the normalisation of other business under the current endemic phase of Covid-19.
Despite higher crude palm oil (CPO) prices and project sales recognition by its 52.4% owned subsidiary, Boilermech Holdings Bhd, QL said palm oil and clean energy (POCE) 1Q sales decreased by 8% year-on-year (y-o-y).
This is due to the weaker performance of palm oil activities affected by a significant drop in fresh fruit bunch (FFB) tonnage produced and processed, in addition to lower CPO sales with high inventory caused by Indonesia’s export ban.
The negative earnings impact reported by the segment was mainly due to project margin compression caused by higher material costs for Boilermech, the weak performance of palm oil, and foreign currency translation loss with the weakening of the Indonesian rupiah against the US dollar.
The group noted integrated livestock farming (ILF) sales during the quarter rose 28% against the corresponding quarter, mainly due to higher feed raw material trading volume and selling prices, in addition to higher farm produce prices.
QL’s convenience store chain (CVS) business’s quarterly sales increased by 44% in the period as against the corresponding period, mainly due to an increase of 51 new stores and higher store sales with business activities normalised after the economy re-opened in October 2021.