QAF’s net profits skyrocket 121% to $28.4m

Thanks to its Gardenia Bakeries’ stake sale.

QAF Limited (QAF) closed Q2 with $28.4m in earnings, lifting profits by 121% YoY from 2Q15’s $12.8m.

According to a news release by the firm, the boost is thanks to a one-off $9.7m gain from the sale of QAF’s 20% stake in Gardenia Bakeries. The sale was not subject to tax as well as lower taxes paid by other subsidiaries.

OCBC noted in a report that QAF has deconsolidated Gardenia Bakeries’ results, as it is now a joint venture of the group. Stripping out the exceptional gain, profit after tax and minority interests still surged about 57%, propped up by robust profitability in Rivalea (primary production segment). The company also declared an interim dividend of 1 S cent/share, similar to last year.

Moreover, revenue for Q2 tumbled 17% to $208.4m. Notwithstanding the deconsolidation, sales picked up for all business segments—Bakery, Primary Production, and Trading & Logistics.

Expenses also fell thanks to lower raw material and feed costs, on top of Garden Bakeries’ deconsolidation.