QL Resources 2Q net profit up 15%

KUALA LUMPUR (Nov 29): Poultry farmer QL Resources Bhd saw its net profit rise 15.1% to RM69.68 million in its second financial quarter ended Sept 30, 2019 (2QFY20) from RM60.52 million a year ago, mainly due to higher sales from its marine product manufacturing (MPM) segment.

This resulted in a higher earnings per share of 4.29 sen for 2QFY20 compared with 3.73 sen for 2QFY19.

Revenue for the quarter rose 16.6% to RM1.07 billion from RM920.26 million a year ago.

In a bourse filing today, QL Resources said the MPM segment's earnings for the quarter increased 36% due to higher contributions from fishmeal and surimi-based products.

The palm oil activities (POA) segment also saw earnings improve in 2QFY20 despite lower sales, due to higher oil extraction rate and foreign exchange translation gain.

The integrated livestock farming segment's earnings increased 2% year-on-year in 2QFY20 on higher contribution from Indonesia and Sabah poultry units operation, which was offset by unrealised quarterly biological assets fair value fluctuations.

The strong quarter performance lifted the group's net profit for the cumulative six months (1HFY20) up by 15.2% to RM120.23 million from RM104.38 million a year ago, while revenue grew 19% to RM2.07 billion from RM1.74 billion in 1HFY19.

On prospects for the remaining year ending March 31, 2020, QL Resources said it is confident that its performance will be better than FY19.

Shares in QL Resources closed five sen lower at RM7.25 today, bringing it a market capitalisation of RM11.76 billion.