KUALA LUMPUR (May 30): QL Resources Bhd’s (KL:QL) net profit surged almost 35% in the fourth quarter ended March 31, 2024 (4QFY2024) on the back of improved sales from most business segments, which helped offset flat sales for palm oil and clean energy.

Net profit climbed to RM98.72 million or 4.06 sen per share for 4QFY2024, from RM73.32 million or 3.01 sen per share a year ago, according to its filing on Thursday. Quarterly revenue increased 13.7% year-on-year to RM1.68 billion compared to RM1.47 billion.

Sales for the convenience store chain segment went up 23% from the corresponding quarter a year ago due to increased operating stores and better average sales, followed by integrated livestock farming, which went up 18%, and marine product manufacturing at 4%, while palm oil and clean energy was flat.

The group has proposed a final dividend of 3.5 sen per share, amounting to RM85.2 million for the quarter under review, bringing the total dividend payout to 6.5 sen per share for the financial year ended March 31, 2024 (FY2024) compared with seven sen for FY2023.

However, on a quarterly comparison, QL Resources’ net profit was 20.5% lower against the RM123.6 million achieved in 3QFY2024.

For FY2024, QL Resources’ net profit increased 26.23% to RM437.79 million — the highest ever since its listing — against RM346.82 million a year earlier. Its annual revenue grew 7% to RM6.68 billion against RM6.24 billion in FY2023.

The group is cautious about its outlook as its food-related core businesses are generally sensitive to consumer sentiment and changes in government policy, including tax and subsidy schemes.

Nonetheless, it is also cautiously positive that the business will remain resilient for the new financial year.

"The recovery momentum from [the] past few quarters and our continued focus in driving operational efficiency, new investment in production capacity and the scheduled opening of new CVS (convenience store chain) stores will help to cushion the adverse effects from the above-mentioned challenges," it noted.

Furthermore, QL Resources noted that consumer confidence is expected to improve in view of the new civil servant wage structure and change in the Employees Provident Fund withdrawal scheme.

Shares of QL Resources finished one sen lower at RM6.40 on Thursday, giving the group a market capitalisation of RM15.58 billion.