On Sep 12, joint group managing director and executive director Lin Kejian acquired 344,200 shares at an average price of S$0.804 per share. With a consideration of S$276,737, this increased his total interest in QAF from 48.76 per cent to 48.82 per cent.

 

It followed his acquisition of 1,018,200 shares at S$0.815 per share between Aug 25 and 29. Lin has been filing acquisitions in the stock since Aug 15, prior to which his preceding acquisitions were made back in late June 2020.

Between Aug 25 and 29, QAF joint group managing director and executive director Lin Kejian acquired 1,018,200 shares at an average price of S$0.815 per share. With a consideration of S$829,965, this increased his total interest in QAF from 48.58 per cent to 48.76 per cent.

 

Lin has been filing acquisitions in the stock since Aug 15, prior to which his preceding purchases were back in late June 2020.

Between Aug 17 and Aug 23, QAF joint group managing director and executive director Lin Kejian acquired 1,586,000 shares at an average price of S$0.80 per share. With a consideration of S$1,269,535, this increased Lin&rsquo s total interest in QAF from 48.30 per cent to 48.58 per cent.

 

This followed his acquisition of 450,000 shares at an average price of S$0.79 per share on Aug 15.

 

Prior to this, his preceding acquisitions were back in late June 2020, with 47,600 shares acquired at an average price of at S$0.78 per share.

 

Lin was first appointed as a non-executive director of the company in December 2007. In October 2010, he became an executive director of the company, holding the post of operations director.

 

He assumed the position of deputy group managing director of the QAF Group in September 2014, and thereafter joint group managing director of the QAF Group with effect from January 2017.

 

QAF reports most of its revenue to the Philippines, which contributed 46 per cent of its first-half FY2023 (ended Jun 30) and FY2022 revenue. Singapore contributed 36 per cent of its H1 FY2023 (ended Jun 30) and FY2022 revenue.

 

For H1 FY2023, the group&rsquo s bakery segment sales increased by 10 per cent (or 17 per cent in constant currency terms) to S$216.1 million, while the distribution and warehousing segment achieved a 12 per cent increase in revenue to S$80.3 million, mainly driven by higher sales to food services, export and retail supermarkets.

 

This year, the group is continuing to concentrate on stable revenue growth by expanding its distribution channels, developing new products, and making strategic pricing and product mix adjustments to maintain its competitive position.

 

This parallels the group&rsquo s efforts to expanding its trading and distribution business with the capital-light, scalable approach, concentrating on the sale and distribution of long shelf-life products that complements its expansive distribution and supply chain network across Asean, with the potential to expand into China and the Australasia region.

 

The group has also been reviewing manufacturing and distribution efficiency, capacity utilisation, and cost management.

 

QAF maintains that over the years, the loyal support of its customers has enabled the group to attain &ldquo Superbrands&rdquo status for Gardenia, Cowhead, and Farmland, and &ldquo Top Influential Brand&rdquo and &ldquo Singapore&rsquo s No 1 Selling Bread Brand&rdquo status for Gardenia.

On Aug 15, QAF joint group managing director and executive director Lin Kejian acquired 450,000 shares at an average price of S$0.79 per share. With a consideration of S$355,410, this increased his total interest in QAF from 48.22 per cent to 48.30 per cent.

 

Lin&rsquo s preceding acquisitions were back in late June 2020 with 47,600 shares acquired at an average price of at S$0.78 per share.

 

On Aug 8, QAF reported that its H1FY23 (ended Jun 30) revenue increased 12 per cent from H1FY22, with profit after tax declining 41 per cent.

 

The group noted that the poorer performance for H1FY23 compared with H1FY22 was largely due to the share of losses in its joint venture, Gardenia Bakeries (KL), of S$10 million for H1FY23 compared to S$3.8 million share of profits for H1FY22.

 

On the other hand, better performance by both the bakery and distribution & warehousing segments improved the group&rsquo s performance.

 

Multi-industry food company QAF is expecting to report a drop in profit before and after tax for the 1HFY2023 period ended June 30, compared to the corresponding period in the year before.

 

In a profit guidance filing, QAF says the drop in profit for the 1HFY2023 is based on a review to-date of the unaudited consolidated financial results for the half-year period, which included a periodic assessment of the recoverable amount of the group&rsquo s investment in its joint venture (JV) Gardenia Bakeries KL (GBKL).

 

QAF is expected to record a non-cash impairment of approximately $9.2 million in its 1HFY2023 results, which will be recognised as part of its share of JV profits or losses.

 

In April 2016, the group reduced its shareholding in GBKL from 70% to 50% to comply with Malaysian regulatory conditions. GBKL accordingly ceased to be a subsidiary of the group and became a 50/50 joint venture with QAF.

 

As required by Singapore&rsquo s financial reporting standards, QAF re-measured its remaining 50% investment in GBKL to its fair value as at March 31, 2016. An external valuer was appointed to perform this valuation which resulted in a net fair value uplift on identifiable assets of $28.9 million and goodwill of $25.0 million.

 

Under the shareholders&rsquo agreement, the parties are to work towards a listing of GBKL by a specified date &mdash which currently is scheduled for March 31, 2028. However, if a listing cannot be achieved by the specified date and there is no acquisition by one shareholder of the GBKL shares of the other, GBKL will be wound up and the shareholders&rsquo agreement shall terminate.

 

However, it is possible for the JV to be extended by mutual agreement, with both parties having agreed to an extension of the listing target date from April 2026 to the current March 2028 date.

 

Driven by this non-cash impairment, QAF expects to report a drop in its profit for 1HFY2023, compared to the year-earlier period.

 

Notwithstanding the impairment, however, and barring unforeseen circumstances, QAF notes that it expects operating performance for 1HFY2023 to be &ldquo satisfactory&rdquo .

 

See also: Lian Beng expects lower profits for FY2023 after subsidiary SLB Development issues profit guidance

 

QAF has advised that further details of its performance will be set out in its financial results for 1HFY2023, to be released in August.

 

QAF : Q01 -0.58%, the maker of Gardenia bread, posted net profit of S$11.2 million for the second half ended December 2022, down 54 per cent from S$24.6 million a year ago.

 

The decline was mainly due to the absence of earnings from discontinued operations with the disposal of its primary production business.

 

For H2 FY2021, the group had recorded net profit of S$10.4 million from the discontinued operations.

 

Earnings from continuing operations fell 21 per cent in H2 FY2022, from S$14.2 million in the year-ago period, as higher costs and expenses outpaced a growth in revenue.

 

Revenue was 6 per cent higher at S$307.1 million in H2, compared with S$290.4 million the previous year.

 

The latest results bring full-year earnings down 63 per cent to S$19.4 million, while revenue was 3 per cent higher at S$577.5 million.

 

Earnings per share (EPS) stood at S$0.034 for FY2022, compared with S$0.091 in FY2021.

 

Looking ahead, the group said 2023 is expected to be &ldquo another year of a challenging operating environment&rdquo .

 

&ldquo Whilst recent softening of wholesale commodity pricing in wheat, utilities and fuel is welcomed, these costs remain above pre-pandemic levels,&rdquo QAF said.

 

The board has proposed a final dividend of S$0.04 per share for the period, similar to the previous year.

MULTI-INDUSTRY food company QAF : Q01 0% expects its operating performance before exceptional items for its second half (H2) of 2022 to exceed its results in the first half, the company said in its profit guidance on Tuesday (Jan 17).

 

QAF said its H2 performance is &ldquo typically&rdquo better than H1, although it had been challenging to comment on the trend in the current volatile environment.

 

For its financial year ended 2022, the company also recorded insurance payouts as exceptional gains.

 

In October, QAF said it received total interim insurance payments of RM62 million (S$20 million) for damages at one of its Malaysian factories during severe flooding in December 2021.

 

Meanwhile, the company expects it will record higher unrealised foreign exchange loss of S$10.4 million for FY2022, mainly from its holdings in Australian dollar-denominated cash and deposits that amounted to A$147.6 million (S$134.5 million).

 

QAF also expects to record non-cash impairment of around S$5 million on its investment in its joint venture Gardenia Bakeries (KL), as part of its periodical assessment on the recoverable amount of its investment.

 

It added that it &ldquo cannot rule out future non-cash write-downs of its investment&rdquo due to currency movements, interest rates, trading performance and a future decision by the joint venture parties concerning the business beyond Mar 31, 2028.

 

For H1, the company said it saw a &ldquo significant improvement&rdquo in both profit before tax and profit after tax and exceptional items figures, attributable to the group getting its first interim insurance payment from the flood damages.

 

QAF will announce its H2 results in August.

FOOD company QAF : Q01 -0.59% is expected to report a &ldquo significant improvement&rdquo in both profit before tax and profit after tax and exceptional items figures for H1 ended June compared to the corresponding period in 2021, the company said in a bourse filing on Wednesday (Jul 20).

 

This improvement is attributable to the group getting its first interim insurance payment of S$9.6 million under its insurance policy for covering the damage to its property, plant and equipment on the back of the severe flooding at one of its Malaysian factories. 

 

QAF added that it had received a further S$6.3 million this month as the second interim insurance payment under the same insurance policy. This amount will be reported as an exceptional item in the group&rsquo s H2 results. 

 

The insurers are currently processing the claims submitted under this insurance policy, but QAF estimates that the total claim under the policy will amount to about S$35 million. 

 

The group, however, warned that the total amount of the claims has not yet been finalised as the purchase orders for components of the damaged property, plant and equipment have not been fully issued. The claims also remain subject to the insurers&rsquo assessment. 

 

The entire amount recovered under the insurance policy will be used to fund a substantial part of the costs of reinstating the damaged production lines at QAF&rsquo s Malaysian factory, said the group. 

 

QAF also said that it is making claims under its consequential loss insurance policy. The amount of consequential loss continues to accrue and has yet to be finalised, but there is a policy limit of about S$13 million, it said. 

 

The amount recovered under the consequential loss policy will be used substantially to pay for the balance of the property reinstatement costs, consultants&rsquo costs and any tax that may arise from these. 

 

QAF will announce its H1 financial results in August.