KUALA LUMPUR (Nov 27): QL Resources Bhd's (KL:QL) net profit for the just-ended quarter dropped 9.39% from a year earlier as most of its business segments reported lower revenue.

Net profit came in at RM116.23 million for the second quarter ended Sept 30, 2025 (2QFY2026), from RM128.28 million previously, according to its filing with Bursa Malaysia. Earnings per share fell to 3.18 sen from 3.51 sen.

Operating profit stood at RM246.63 million, a 9.5% decrease compared with RM272.54 million in 2QFY2025.

Quarterly revenue fell 7.89% year-on-year to RM1.73 billion from RM1.87 billion, dragged by weaker revenue contribution from most of its business segments, except convenience store chain. QL Resources is the master franchisee of the FamilyMart chain.

For the first half of FY2026, QL Resources’ net profit fell 8% to RM216.83 million, from RM235.71 million in the previous corresponding period, while revenue dipped by 1.45% to RM3.44 billion.

No dividend was declared for the quarter.

The group said its marine product manufacturing segment posted a revenue of RM349.38 million in 2QFY2026, down by 11% from a year earlier, amid substantially lower fishmeal sales volume due to overall poor fish landing and depressed international fishmeal selling price. The segment's profit before tax (PBT) fell 19% to RM57.74 million due to margin erosion.

For the integrated livestock farming segment, quarterly revenue was 10% lower at RM890.34 million due to substantially lower feed raw material trading unit price with flat volume. The PBT, however, was 9% higher due to the stronger performance of Vietnam farming operation and stable margin of Malaysia layer operation with lower feed cost as well as improved contribution from branded egg sales.

Despite a net increase of 55 stores and 42 FM Mini vending machines, QL Resources' convenience store chain segment only managed to post a 5% gain in revenue to RM316.74 million. The group blamed this on lower average store sales, impacted by weak consumer sentiment, exclusion of convenience store chain participation in the government's Sumbangan Asas Rahmah programme, and increased competition in the food and beverage market.

The segment posted a 44% decline in PBT to RM8.95 million due to to lower average store sales and higher operating expenses.

The palm oil and clean energy segment’s revenue fell 10% to RM168.6 million, following extremely low crude palm oil sales tonnage delivery caused by shipment delay under palm oil activities. The PBT almost halved to RM12.7 million due to lower solar project contribution with the discontinuation of the net energy metering scheme since end-June 2025, as well as weaker performance of palm oil activities with lower sales.

Shares of QL Resources closed down five sen or 1.16% at RM4.25 on Thursday, giving the group a market capitalisation of RM15.52 billion.