KUALA LUMPUR (May 30): QL Resources Bhd closed the financial year ended March 31, 2023 (FY2023) with new record earnings of RM346.8 million on revenue of RM6.26 billion, as the latest quarter saw a rebound in its convenience store business performance.

QL Resources' 4QFY2023 net profit fell 24.6% quarter-on-quarter (q-o-q) to RM73.32 million from RM97.18 million, ending its run on q-o-q growth in net profit and net margins seen over the last six consecutive quarters, due to some seasonal compression in its marine food business.

Quarterly revenue fell 9.48% q-o-q to RM1.47 billion from RM1.63 billion, as revenue from both segments fell. The livestock business also saw a slight decline in its recent strong performance in Indonesia and Vietnam.

On a positive note, its convenience store business performance have rebounded from its 3QFY2023 levels.

The group, which operates the FamilyMart chain here, opened 14 new stores last quarter, but recorded flat revenue on weaker consumer sentiment although operating efficiency improved q-o-q.

On a year-on-year (y-o-y) basis, 4QFY2023's net profit of RM73.32 million was stronger by 5.6% from RM69.39 million a year ago, as margins were still higher y-o-y to offset the lower volume due to delays in the commencement of a new fishing season this year, QL Resources said.

Quarterly earnings per share rose to 3.01 sen, from 2.85 sen.

The full-year FY2023 bottom line of RM346.8 million or 14.25 sen per share was an improvement of 59.59% from RM217.35 million or 8.93 sen in FY2022.

The year saw a post-pandemic surge in contribution from its livestock business, coupled with government cost subsidy to help mitigate high input costs. The marine food business also saw healthy growth in FY2023 from a year ago.

On prospects, QL Resources said the current high interest rate environment and rising cost of living are expected to dampen consumer sentiment.

“In addition, the upcoming changes to Malaysia's egg and chicken cost subsidy scheme to market-driven pricing mechanism and volatile commodity prices may impact the performance of integrated livestock farming segment,” it said.

“The recovery momentum from past few quarters and our continued focus in driving operational efficiency coupled with the scheduled opening of new convenience store chain outlets together will help to cushion the adverse effects from the above-mentioned challenges,” it added.

Shares of QL Resources closed unchanged at RM5.56, giving it a market capitalisation of RM13.53 billion.