QAF : Q01 0%, the maker of Gardenia bread, posted net profit of S$11.2 million for the second half ended December 2022, down 54 per cent from S$24.6 million a year ago.

The decline was mainly due to the absence of earnings from discontinued operations with the disposal of its primary production business.

For H2 FY2021, the group had recorded net profit of S$10.4 million from the discontinued operations.

Earnings from continuing operations fell 21 per cent in H2 FY2022, from S$14.2 million in the year-ago period, as higher costs and expenses outpaced a growth in revenue.

Revenue was 6 per cent higher at S$307.1 million in H2, compared with S$290.4 million the previous year.

The latest results bring full-year earnings down 63 per cent to S$19.4 million, while revenue was 3 per cent higher at S$577.5 million.

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Earnings per share (EPS) stood at S$0.034 for FY2022, compared with S$0.091 in FY2021.

Looking ahead, the group said 2023 is expected to be “another year of a challenging operating environment”.

“Whilst recent softening of wholesale commodity pricing in wheat, utilities and fuel is welcomed, these costs remain above pre-pandemic levels,” QAF said.

The board has proposed a final dividend of S$0.04 per share for the period, similar to the previous year.

Shares of QAF closed 0.6 per cent or S$0.005 lower at S$0.855 on Friday, before the announcement.