KUALA LUMPUR (FEB 27): QL Resources Bhd’s (KL:QL) net profit increased 1.9% to RM125.97 million for the third quarter ended Dec 31, 2024 (3QFY2025) from RM123.62 million a year ago.

Its earnings were boosted by the palm oil and clean energy and integrated livestock farming segments, which offset weaknesses in the marine product manufacturing and convenience store chain businesses.

Quarterly revenue was up 6.2% to RM1.82 billion from RM1.71 billion in 3QFY2024, as all segments registered higher revenue except for marine product manufacturing.

During the quarter under review, the group declared an interim dividend of 2.5 sen per share, down from three sen a year ago.

For the nine months ended Dec 31, 2024 (9MFY2025), the group’s net profit rose 6.7% to RM361.68 million from RM339.07 million, as annual revenue increased 6.2% to RM5.31 billion from RM5 billion.

Segment-wise, marine product manufacturing earnings decreased 11%, hurt by margin erosion in fishmeal as a result of weaker aquaculture activities.

Integrated livestock farming earnings, however, expanded 16% on the back of substantially higher feed raw material trading volume with stable margin, better Malaysia operation performance contributed by lower input costs as well as cost subsidies.

Convenience store chain earnings grew 13%, driven by net increase in stores and higher average store sales during the festivities and the positive impact from initial Employee Provident Fund (EPF) Account 3 withdrawal in the first quarter.

Meanwhile, its palm oil and clean energy earnings nearly doubled as its subsidiary BM Greentech Bhd (KL:BMGREEN) experienced higher project margin and project progress. In addition, palm oil activities reported better margins, helped by substantially higher crude palm oil prices.

On prospects, the group stated that despite the uncertain global economic outlook due to US trade protectionism, intensified tariff wars and weakened domestic consumer sentiment, it remains cautiously optimistic that its business performance will stay satisfactory in the coming quarter, supported by the egg cost subsidy and ceiling price mechanism in Malaysia.

Shares of QL Resources close up one sen or 0.2% to RM4.72 on Thursday, giving it a market capitalisation of RM17.23 billion.