Apollo Food 3Q net profit grows by 44.73% on higher sales, cautions against rising costs

KUALA LUMPUR (March 29): Apollo Food Holdings Bhd's net profit for the third quarter ended Jan 31, 2022 (3QFY22) almost doubled by 44.73% to RM5.08 million from RM3.51 million last year due to higher sales.

Earnings per share for the quarter stood at 6.35 sen from 4.39 sen, its filing showed.

Its quarterly revenue also improved by 26.28% to RM54.28 million from RM43.01 million.

Despite the strong showing for the quarter, Apollo Food's net profit for the cumulative nine months ended Jan 31, 2022 (9MFY22) plunged by 46.42% to RM6.14 million from RM11.46 million due to higher margin compressions as evidenced by its higher costs of sales, which rose to RM105.17 million from RM104.23 million.

Its 9MFY22 revenue also declined marginally by 3.95% to RM130.92 million from RM136.3 million in 9MFY21.

On prospects, Apollo Food said it is currently operating under a challenging environment as it faces uncertainties in raw material costs, labour shortages and related costs.

"The group will implement prudent measures and improve operational efficiency to sustain the business and results," its filing said.

Apollo Food shares closed unchanged at RM3.70 on Tuesday, valuing the confectionery manufacturer at RM296 million.