QL Resources 4Q net profit falls on higher raw material prices, declares 3.50 sen dividend

KUALA LUMPUR (May 30): QL Resources Bhd’s net profit dropped 39.43% to RM69.39 million for the fourth quarter ended March 31 (4QFY22), from RM114.57 million a year earlier, amid sharply higher raw material price, rising fuel cost and disrupted operations.

Earnings per share fell to 2.85 sen from 4.71 sen, the group said in a bourse filing.

The lower earnings was despite a 12.62% rise in revenue to RM1.37 billion from RM1.22 billion, on the back of a higher revenue contribution from most of the business segments.

On a quarter-on-quarter basis, net profit increased 16.05% from RM59.79 million in 3QFY22, while revenue eased 1.98% from RM1.41 billion.

The group declared a final dividend of 3.50 sen per share.

For the full-year ended March 31, QL’s net profit declined 30.32% to RM217.32 million, from RM311.91 million previously.

Annual revenue, on the other hand, grew 19.84% to RM5.25 billion from RM4.38 billion.

Looking ahead, the group said its convenience store chain (CVS) business pillar is poised to be another catalyst for its growth.

The CVS business comprises the FamilyMart retail chain and QL Kitchen — a food production business.

“The CVS contribution to total revenue and profit before tax surpassed the 10% threshold in just five years and is now reported as a standalone pillar in accordance with MFRS 8.13,” the group said.

After adjustments made for the pandemic, there are now 290 FamilyMart stores, excluding FM Mini, QL said.

“QL will achieve its target of 300 FamilyMart stores by mid-2022 and has set plans in motion for a further 300 stores in the next five years to bring the total to 600 stores.

“At the same time, 300 FM Minis are also planned by FY2026. RM100 million has been invested into QL Kitchen to support FamilyMart’s growth,” it added.

Shares in QL settled three sen or 0.60% higher at RM5.03 on Monday (May 30), valuing the group at RM12.24 billion.