KUALA LUMPUR (Aug 28): QL Resources Bhd (KL:QL) said on Wednesday its net profit rose 16% in the first quarter from a year earlier mainly led by its convenience store chain business.

Net profit for the three months ended June 30, 2024 (1QFY2025) was RM107.43 million compared with RM92.81 million a year ago, QL said in an exchange filing. Earnings per share rose to 4.41 sen from 3.81 sen. Revenue for the quarter increased 1.3% year-on-year to RM1.62 billion from RM1.6 billion.

“Management is cautiously positive that the business performance will remain satisfactory in the coming quarter with the continued egg cost subsidy and revised ceiling price mechanism in Malaysia,” QL said on its prospects for the next quarter.

QL’s convenience store chain division, which runs FamilyMart stores in Malaysia, reported a 77% jump in pre-tax profit thanks to improved margins from higher store sales, supported by better consumer sentiment following the partial pension fund withdrawal scheme and seasonal festivities.

Revenue for the segment rose 22% mainly due to a net increase of 35 stores and 35 FM Mini outlets during the period as well as better average store sales.

The group did not declare any dividend for the quarter.

QL is also involved in marine product manufacturing, livestock farming, as well as palm oil and clean energy.

Profit before tax at the company’s mainstay livestock farming business rose 8% largely due to improved performance in Malaysia's layer operations, supported by lower feed costs and maintained egg cost subsidies.

Contributions from a newly acquired layer farm and better results from its Vietnam farming operations also boosted performance of the segment. Segment revenue slipped slightly due to lower unit prices for feed raw materials and reduced selling prices for eggs in Malaysia.

The marine product manufacturing segment's pre-tax profit increased slightly, benefiting from better margins for surimi-based products due to lower input material costs. Revenue for the segment however decreased marginally mainly due to lower sales in fishing, fishmeal, and aquaculture activities.

Pre-tax earnings at the segment that houses its palm oil and clean energy business rose 25% driven by better contributions from solar projects at its unit BM Greentech Bhd (KL:BMGREEN). The palm oil business also saw improved margins due to higher crude palm oil prices.

However, the segment's revenue fell 10% as BM Greentech recorded lower sales due to slower project progress during Ramadan.

Shares of QL Resources were 11 sen or 1.66% lower at RM6.50 at Wednesday’s closing bell, giving the group a market capitalisation of RM15.82 billion.