MULTI-INDUSTRY food company QAF : Q01 0% expects its operating performance before exceptional items for its second half (H2) of 2022 to exceed its results in the first half, the company said in its profit guidance on Tuesday (Jan 17).

QAF said its H2 performance is “typically” better than H1, although it had been challenging to comment on the trend in the current volatile environment.

For its financial year ended 2022, the company also recorded insurance payouts as exceptional gains.

In October, QAF said it received total interim insurance payments of RM62 million (S$20 million) for damages at one of its Malaysian factories during severe flooding in December 2021.

Meanwhile, the company expects it will record higher unrealised foreign exchange loss of S$10.4 million for FY2022, mainly from its holdings in Australian dollar-denominated cash and deposits that amounted to A$147.6 million (S$134.5 million).

QAF also expects to record non-cash impairment of around S$5 million on its investment in its joint venture Gardenia Bakeries (KL), as part of its periodical assessment on the recoverable amount of its investment.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

It added that it “cannot rule out future non-cash write-downs of its investment” due to currency movements, interest rates, trading performance and a future decision by the joint venture parties concerning the business beyond Mar 31, 2028.

For H1, the company said it saw a “significant improvement” in both profit before tax and profit after tax and exceptional items figures, attributable to the group getting its first interim insurance payment from the flood damages.

QAF will announce its H2 results in August.

Shares of QAF closed flat at S$0.855 on Tuesday.