Mar 20, 2024 - $APOLLO (6432.MY)$ shares rose 6.14% to 7.43MYR in trading on Wednesday. The company released its financial report on March 18, and the stock price rose 25% since the release of the financial report.

Apollo Food Holdings Berhad, a Malaysian-incorporated entity, released its unaudited financial results for the quarter ending 31st January 2024. The firm posted revenues of RM73.85 million, marking a 4.0% rise from the RM71.08 million recorded in the same quarter of the previous year (31st January 2023).

In terms of profitability, the pre-tax profits grew significantly, jumping 173.4% YoY from RM12.49 million to RM34.08 million. Subsequently, the period's net profit climbed to RM30.24 million, up 179.1% from RM10.82 million a year ago. Consequently, basic earnings per share rose correspondingly from 13.52 sen to 37.80 sen.

As of 31st January 2024, the net assets per share attributed to ordinary shareholders reached RM3.23, compared to RM2.98 at the end of the preceding financial year on 30th April 2023. Operational income streams such as interest income and rental income for the quarter contributed RM787 thousand and RM31 thousand respectively, while dividend income for the period was RM50 thousand. Depreciation charges for property, plant and equipment stood at RM2,124 thousand, investment property depreciation was RM19 thousand, and there was a realised loss on foreign exchange transactions of RM48 thousand.

Income tax expenses for the current quarter and cumulative periods showed considerable variation, with effective tax rates fluctuating between 11.3% and 19.4%. During the nine-month period leading up to 31st January 2024, the company performed well, even amidst subdued consumer spending sentiments, due to the effectiveness of its brand recognition and pricing strategies. Excluding gains from property disposals, the company’s performance still surpassed the previous year’s.

Looking forward, the company aims to leverage its strong operational cash flow and debt-free balance sheet to capitalize on emerging opportunities, including exploring new markets and customer segments to maximize potential and deepen market presence. It remains committed to maintaining sound financial practices and continuously enhancing operational efficiency, prioritizing product and service quality.

The Board did not announce any corporate proposals during the reporting period, and the Group had no outstanding borrowings, debt securities, or derivative financial instruments at the end of the quarter. Furthermore, there were no material litigation matters or fair value changes on financial liabilities that affected the Group’s financials. Apollo Food Holdings declared a second interim single-tier dividend of 50 sen per ordinary share for the financial year ending 30 April 2024, with entitlement and payment dates set for 3rd and 24th April 2024 respectively.

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