QAF multiplies H1 earnings 13 times to S$28.2 million

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WITH a pandemic-fuelled bread boom, QAF, the maker of Gardenia bread, has multiplied its net profit 13 times on-year to S$28.2 million for the six months ended June. Read more at The Business Times.

Distribution and warehousing revenue was similarly robust, rising by 13 per cent to S$60 million, mainly contributed by higher domestic sales to retail supermarkets and exports.

The primary production segment was more tepid, with revenue remaining flat. Despite a lower sales volume, the segment benefited from higher average selling prices, given the tightening of general market supply, lower grain prices and better performance from its pork processing business. However, QAF will be launching a sale process for its primary production arm in H2, so that it can better focus on the remaining two units.

It expects its bakery business to eventually normalise from H2, with the reopening of businesses. “As such, the group’s focus continues to be on sustainable long-term growth,” it said.

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