MULTI-INDUSTRY food company QAF : Q01 0% posted a 66.2 per cent decline in net profit after tax from continuing operations to S$4.9 million for the half-year ended Jun 30, 2023, from S$14.5 million in the corresponding period a year earlier.

This comes as revenue rose 11.5 per cent to S$301.6 million in the same period, from S$270.5 million a year ago.

In a bourse filing on Tuesday (Aug 8), the company attributed the decline in net profit to a non-cash impairment of S$9.2 million on the group’s investment in joint venture Gardenia Bakeries (KL).

The group had earlier announced on Jul 21 that it would recognise the non-cash impairment after regular assessment of the recoverable amount of the investment.

The group’s board has declared an interim dividend of S$0.01 per share for the half-year period. This compares to the interim dividend of S$0.01 per share that the group declared in the same period last year, as well as a special dividend of S$0.02 per share.

In the first half of 2023, QAF said that it was impacted by higher key raw material commodity, electricity and labour costs.

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“In addition, global supply chain disruptions, tight labour supply and foreign currency exchange rate volatility have continued to affect the group’s business environment,” it said.

Still, the group said that it will continue to focus on expanding its trading and distribution business, and concentrate on the sale and distribution of long-shelf-life products.

In a separate bourse filing, QAF announced that it will appoint Accel Works Worldwide chief executive Aw Syee Chia as an independent director from Aug 9.

The group said that the board approved the appointment after taking into account his experience in the information technology industry, as well as his past experience working with clients in food-related businesses and professional qualifications.

QAF shares closed flat at S$0.795 on Tuesday, before the results were released.