Apollo Food cautions of challenging operating environment as profit rises 19% q-o-q

KUALA LUMPUR (Sept 27): Snacks producer Apollo Food Holdings Bhd's net profit for the first quarter ended July 31, 2022 (1QFY23) jumped 26 times year-on-year (y-o-y) to RM4.56 million, from RM172,000 a year ago, thanks to post-pandemic sales recovery.

Earnings per share grew to 5.7 sen for 1QFY23, from 0.22 sen for 1QFY22, its filing showed.

The group’s revenue rose 42% y-o-y to RM55.46 million, from RM39.01 million for 1QFY22.

On a quarter-on-quarter (q-o-q) basis, its 1QFY23 net profit of RM4.56 million or 5.7 sen per share was 19% higher than RM3.83 million or 4.79 sen per share for 4QFY22.

This was despite revenue contracting by 3% to RM55.46 million, from RM57.34 million previously. Apollo Food attributed the q-o-q improvement in earnings to lower operating expenses, although it experienced a decrease in local sales.

Nonetheless, the group cautioned that it is operating under a challenging environment, having to face uncertainties of raw materials costs, coupled with labour shortages and related costs.

“The group will implement prudent measures and improve operational efficiency to sustain the business and its results,” it said.

Shares in Apollo Food closed unchanged at RM3.60 on Tuesday (Sept 27), giving the group a market capitalisation of RM288 million.