QAF posts 31% jump in Q2 profit on higher sales

MAINBOARD-LISTED food company QAF has posted a 31 per cent jump in its second-quarter net profit to S$12.2 million on the back of higher sales, even as the strong Singapore dollar worked against it.

Revenue for the three months from April was marginally lower by S$1.1 million to S$252.5 million. The slight decrease was largely attributable to the translation effect of a higher Singapore dollar exchange rate versus the domestic currencies of certain countries the group operates in.

The stronger Sing dollar meant that QAF's fully integrated producer of meat in Australia, Rivalea (Australia) Pty Ltd, and its bakery operations in Malaysia recorded lower sales in terms of Sing dollars.

Excluding the currency effect, all business segments, namely the bakery primary production and trading & logistics, recorded higher sales. Rivalea also increased its sales through higher general sales volume and higher average selling prices.

Accordingly, costs and expenses dipped 2 per cent for the quarter to S$235.9 million, on the back of a stronger Sing dollar.

Earnings per share rose to 2.2 Singapore cents for the quarter, up from 1.7 cents a year ago.