QL Resources 1Q net profit flat due to slow El Nino recovery

by TMR

QL Resources Bhd registered a flat earnings growth for the first quarter ended June 30, 2018 (1Q19) mainly due to weaker performance by its oil palm business.

In an exchange filing yesterday, the agro-food company noted its net profit stood at RM43.9 million, 0.04% higher from RM42 million recorded a year ago for the same period. Revenue rose 4.84% year-on-year (YoY) to RM816 million despite having a lower sales from its palm oil activities (POA).

The company said POA’s sales fell by 38% YoY to RM72.3 million partly affected by lower fresh fruit bunch production in Indonesia due to excessive rainfall as well as post El-Nino tree stress on older acreage in Tawau. Its marine product manufacturing and integrated livestock farming businesses saw higher revenue contribution in the current quarter.