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QL sees slight contraction to its net profits from higher tax, finance cost

29 Jun 2020 / 18:53 H.

PETALING JAYA: QL Resources Bhd’s net profit contracted marginally by 0.7% to RM42.97 million in its fourth quarter ended March 31, from RM43.26 million reported in the corresponding quarter of the previous year due to higher tax expense and finance costs.

Revenue for the quarter rose 8.4% to RM979.42 million from RM903.77 million reported previously.

According to the group’s Bursa disclosure, its marine product manufacturing business earnings for the period rose by 20% to RM41.47 million on the back of higher sales from surimi, fishmeal and surimi-based products.

Its palm oil activities saw a 68% decline in earnings to RM3.34 million from lower sales and forex translation loss.

Meanwhile, QL Resources’ integrated livestock farming saw an 11% increase in earnings to RM17.98 million from higher sales, feed raw material trade and contribution from FamilyMart.

For the financial year ended March 31, 2020, its net profits rose 10.4% RM293.32 million, from RM216.78 million recorded in the previous financial year.

Revenue for the period grew 14.7% to RM4.15 billion from RM3.62 billion reported previously.

For the period, the group’s directors have proposed a final single tier dividend of 4.5 sen per share subject to the approval of its shareholders in the upcoming annual general meeting.

In regards to the group’s prospects ahead, it stated that despite the severe Covid-19 pandemic crisis and impending economic recession, barring unforeseen Covid-19 resurgence, the management is still committed to strive for growth of QL’s resilient businesses in FY2021.

The group is also proposing to undertake a bonus issue of up to 811.21 million new ordinary shares on the basis of 1 bonus share for every 2 existing QL shares held.

“The proposed bonus issue serves to reward the existing shareholders of the company for their loyalty and continued support to QL and its subsidiaries and in conjunction to QL’s 20 years of listing,” it said.

The proposed bonus issue is expected to be completed by the fourth quarter this year.

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