SINGAPORE (Feb 24): QAF, the multi-industry food company, reported FY16 earnings more than doubled to $120.4 million from $52.5 million a year ago after the group recorded an exceptional gain of $59.4 million from the sale of a 20% stake in GBKL in April.
The group also recognised share of profits of JV of $6.4 million in FY16 due to the group’s share of profits of the remaining 50% stake GBKL since April.
Group revenue fell 11% fall to $889.5 million, mainly due to the deconsolidation of financial results of GBKL after the stake sale. However, increases in sales were achieved by all business segments of the group – Bakery, Primary Production and Trading & Logistics.
Sales revenue from the Bakery segment decreased 26% to $379.8 million. The Primary Production segment, which consists of Rivalea, an integrated meat production business in
Australia, saw revenue rise 6% to $398.2 million. Sales revenue for Trading & Logistics rose 1% to $106.1 million.
In its outlook, the group says it is exposed to certain markets in the region which are expected to experience continuing slow growth in 2017. Furthermore, the regional currencies may face volatility and pressure. These factors may result in reduced consumer spending and higher costs, it said.
Shares of QAF closed 1 cent higher at $1.56.
