QAF H1 net profit drops by 69% to S$3.9 million

[SINGAPORE] QAF posted a drop of 69 per cent in its net profit to S$3.9 million for the half-year of FY2025 ended June, impacted by a marginal dip in revenue and higher costs.

In a regulatory filing published on Friday (Aug 8), the baker and provider of distribution and warehousing services reported a 1 per cent year-on-year reduction in revenue to S$306.1 million and a 3 per cent rise in total expenses and costs to S$297.9 million.

Hence, earnings per share slid, to 0.7 Singapore cent from 2.2 cents for the year-ago period.

Net asset value per share also decreased, to 82.7 Singapore cents as at end-June from 86.9 cents as at end-2024.

QAF said it experienced higher operating expenses, particularly in labour, amid sluggish consumer demand. These cost pressures will continue to weigh on its profitability.

Meanwhile, foreign exchange rate movements remain volatile, and will continue to affect both reported results and business operations in overseas markets, it noted.

It posted foreign currency conversion loss of S$3 million, compared with S$100,000 for the corresponding period of FY2024, mainly due to the conversion effects from Australian dollar to Singapore dollar of its substantial holdings in Australian-dollar-denominated cash.

In spite of the drop in net profit, QAF board has declared an interim dividend of one Singapore cent per share – unchanged from the year-ago period – with the payment date to be announced.

QAF shares dropped 0.6 per cent or S$0.005 to S$0.885 on Friday, before publishing its financial results.