KUALA LUMPUR (March 30): Apollo Food Holdings Bhd's net profit in the third financial quarter ended Jan 31, 2017 (3QFY17) was down by 28.7% to RM5.14 million from RM7.2 million a year earlier due increase in raw material costs.

In a stock exchange filing today, Apollo Food noted that revenue in 3QFY17 fell 0.2% to RM51.21 million from RM51.31 million.

For the cumulative nine months of FY17 (9MFY17), the group's net profit stood at RM15.13 million, down 46% from RM28.03 million, whereas revenue declined 3.7% to RM149.32 million from RM155.04 million a year earlier.

Moving forward, the group expects its operating environment to be tougher in both the current and coming financial years and the market to remain competitive in light of increasing raw material costs and the volatile ringgit.

"Despite a challenging environment, the board is of the opinion that the group will be able to maintain its market position by implementing prudent measures and improving operational efficiency to safeguard the group's profitability," it said.

"By focusing on products and services quality, the group is optimistic that it will continue to achieve satisfactory result in the coming year," it added.

Apollo Food's share price settled 1% lower at RM5.14, valuing the confectionery products and layer cakes manufacturer at RM412 million.