Note: This article has been amended for accuracy.
KUALA LUMPUR (Feb 29): QL Resources Bhd's net profit rose 27.2% to RM123.62 million for its third quarter ended Dec 31, 2023 (3QFY2024) from RM97.18 million a year earlier, on the back of a better performance across all its business segments.
Revenue increased 5.1% year-on-year to RM1.71 billion from RM1.63 billion, the group said in an exchange filing.
The group said its marine product manufacturing segment's pre-tax profit rose 19% to RM88.69 million during the quarter, thanks to a higher margin for fishmeal and surimi-based products from higher export selling prices due to the strong US dollar.
This, it said, helped to offset the weaker performance of surimi which continued to face stiff competition internationally.
For the integrated livestock farming segment, pre-tax profit rose 23% to RM63.6 million due to improved trading margins and better performance of layer operations in Malaysia, helped by cost subsidies for high input costs.
Notably, the group saw a spike of 185% in pre-tax profit for its convenience store chain to RM16.55 million in 3QFY2024 following an increase of 42 stores and additional installation of FamilyMart Mini kiosks.
The group's palm oil and clean energy segment, meanwhile, saw a strong turnaround to record a net profit of RM8.76 million for the quarter, compared to a loss before tax of RM1.25 million a year earlier, due to higher yield from plantations and improved milling efficiency.
Despite the high interest rate environment, escalating geopolitical tensions and uncertain global economic outlook, QL Resources remains cautiously optimistic that its business performance will remain satisfactory in the coming quarter as it envisaged the egg cost subsidy to continue.
For the first nine months of FY2024, QL Resources' net profit climbed 24% to RM339.07 million from RM273.50 million in the previous corresponding quarter, while revenue increased 4.4% to RM5 billion from RM4.79 billion.
The company declared an interim dividend of 3.00 sen per share totaling RM73.01 million to be paid on March 29.
QL Resources shares closed down four sen or 0.68% to RM5.81, valuing the group at RM14.14 billion.