In the recently released financial statements, Apollo Food Holdings Berhad (APOLLO, 6432) has demonstrated a remarkable performance, showing year-on-year and quarter-on-quarter growth in profits. Without further ado, let's delve into the performance recently disclosed by APOLLO.

Revenue Comparison (YoY -6.13%, QoQ +13.11%)

For the second quarter (Q2 FY2024) ending on October 31, the company recorded approximately RM65.99 million in revenue, representing a decrease of about 6.13% compared to around RM70.30 million in the same period last year. Management attributes this decline primarily to a reduction in export sales.

However, compared to the previous quarter, the company experienced a substantial increase in revenue of approximately RM7.65 million or 13.11%. This growth is attributed to an increase in product sales.

Net Profit Comparison (YoY +5.17%, QoQ +30.23%)

Due to a higher gross profit margin in this quarter, the company realized a net profit of approximately RM9.95 million, an increase of about RM0.49 million year-on-year and approximately RM2.31 million quarter-on-quarter. For reference, the gross profit margin for this quarter is approximately 28.38%, higher than the approximately 25.54% in the same period last year and around 27.63% in the previous quarter.

From the quarterly report, it is observed that APOLLO has not incurred any bank loans and holds approximately RM133.48 million in cash and cash equivalents.

Outlook

Reportedly, APOLLO's major shareholder is selling its 51.31% stake to Scoop Capital Sdn Bhd (SCSB), the franchisee of Baskin-Robbins, the world's largest ice cream chain.

In other words, Scoop Capital Sdn Bhd (SCSB), the franchisee of Baskin-Robbins, is going to acquire 51.31% of APOLLO's shares from the major shareholder, Keynote Capital Sdn Bhd (KCSB), at RM5.80 per share or RM238.08 million.

Simultaneously, in accordance with listing regulations, SCSB will acquire the remaining approximately 48.49% shares of APOLLO at the same price, i.e., RM5.80 per share, while maintaining APOLLO's listed status.

So, for readers interested in this company or those who are already shareholders of APOLLO, please closely monitor APOLLO's forthcoming developments and news.

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Disclaimer: The above is purely for educational purposes and reflects personal opinions. It does not constitute any buying or selling recommendations.

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