KUALA LUMPUR: QL Resources Bhd saw net profit for 2QFY12 ending March 31 increase by 15.2% year-on-year (y-o-y) to RM38 million or 4.57 sen a share from RM33 million on the back of higher earnings by its integrated livestock farming division and palm oil activities.
Pre-tax profit for QL’s livestock and palm oil division saw an increase of 32% and 235% respectively for 2Q.
Revenue likewise grew from RM438.7 million to RM495.2 million, which is equivalent to a y-o-y increase of 12.9%. Sales for the livestock division rose by 18% to RM293.1 million from RM247.9 million previously.
According to the notes accompanying the announcement, QL saw an improvement in its livestock segment as a result of higher unit price of raw feed material as well as partly from the recognition of investment in associate Lay Hong Bhd.
“Our palm oil segment saw an improvement mainly due to improved crude palm oil prices, which stood at RM3,090 per tonne for 2Q compared with RM2,590 for the previous corresponding quarter as well as a new contribution for associate Boilermech Bhd,” QL said.
However, QL’s marine product farming division did not perform as well, with pre-tax profit falling 22% y-o-y to RM15.6 million in 2Q and revenue dropping 3% to RM114 million. According to QL, the drop was the result of lower fish landing.
On a cumulative basis, for the first six months of FY12, QL’s net profit rose to RM65.8 million or 7.91 sen a share, from RM59.8 million, while revenue grew 15.4% to RM949.8 million. However, once again QL said that its earnings were impacted by its marine product farming segment.
“Performance for our 1HFY12 results was adversely affected by poor fish landing, especially in Sabah water as well as keen competition in raw material trade. The operating environment was also challenging due to volatile commodity prices, fluctuating currency exchange and uncertainties in the world economy,” said QL.
While QL is expecting the second half of the year to be challenging, it noted that it has seen some improvement in fish landing for 3QFY12.
“We are also expecting to see some contribution from our fishery, poultry and palm oil operation in Indonesia in the fourth quarter. Thus, we are cautiously optimistic on the group’s performance for the second half,” said QL.
This article appeared in The Edge Financial Daily, November 22, 2011.
Pre-tax profit for QL’s livestock and palm oil division saw an increase of 32% and 235% respectively for 2Q.
Revenue likewise grew from RM438.7 million to RM495.2 million, which is equivalent to a y-o-y increase of 12.9%. Sales for the livestock division rose by 18% to RM293.1 million from RM247.9 million previously.
According to the notes accompanying the announcement, QL saw an improvement in its livestock segment as a result of higher unit price of raw feed material as well as partly from the recognition of investment in associate Lay Hong Bhd.
“Our palm oil segment saw an improvement mainly due to improved crude palm oil prices, which stood at RM3,090 per tonne for 2Q compared with RM2,590 for the previous corresponding quarter as well as a new contribution for associate Boilermech Bhd,” QL said.
However, QL’s marine product farming division did not perform as well, with pre-tax profit falling 22% y-o-y to RM15.6 million in 2Q and revenue dropping 3% to RM114 million. According to QL, the drop was the result of lower fish landing.
On a cumulative basis, for the first six months of FY12, QL’s net profit rose to RM65.8 million or 7.91 sen a share, from RM59.8 million, while revenue grew 15.4% to RM949.8 million. However, once again QL said that its earnings were impacted by its marine product farming segment.
“Performance for our 1HFY12 results was adversely affected by poor fish landing, especially in Sabah water as well as keen competition in raw material trade. The operating environment was also challenging due to volatile commodity prices, fluctuating currency exchange and uncertainties in the world economy,” said QL.
While QL is expecting the second half of the year to be challenging, it noted that it has seen some improvement in fish landing for 3QFY12.
“We are also expecting to see some contribution from our fishery, poultry and palm oil operation in Indonesia in the fourth quarter. Thus, we are cautiously optimistic on the group’s performance for the second half,” said QL.
This article appeared in The Edge Financial Daily, November 22, 2011.
