QL Resources net profit dips on lower margins
QL Resources faces profit pressure as lower margins and Malaysia’s egg subsidy cut challenge its core livestock business.
Malaysia-based egg producer QL Resources posted a 4.92% decline in net profit for Q4 ending March 31, 2025, citing lower operating profit. Earnings fell to USD 20.01 million, down from USD 21.06 million a year earlier.
Despite the drop in profit, quarterly revenue increased 6.73% year-on-year to USD 374.99 million. The growth was driven by strong contributions across all segments, especially palm oil and clean energy.
The company attributed this growth to the consolidation of results from its newly acquired Plus Xnergy Holdings and higher solar project deliveries under BM Greentech. Higher crude palm oil prices also bolstered performance.
For the full year, net profit rose 4.05% to USD 97.04 million from USD 93.23 million in FY2024, while annual revenue climbed 6.34% to USD 1.51 billion.
- Livestock farming contributed 52% of FY2025 revenue,
- followed by marine product manufacturing (20%),
- convenience stores (17%),
- and palm oil/clean energy (11%).
The company declared a final dividend of USD 0.0055 per share, totaling USD19.47 million. The full-year dividend payout stands at USD 0.011 per share, down from USD 0.014 per share last year.
Challenges ahead
QL Resources warned of downside risks from external uncertainties, notably US reciprocal tariffs, which could impact trade policies, investments, and foreign exchange volatility.
The company also flagged the potential impact of Malaysia’s egg subsidy removal, effective August 1, after the rate was halved in May.
QL’s marine product manufacturing segment is expected to maintain a ‘neutral to positive’ outlook, backed by low input costs and robust demand for surimi-based products. Meanwhile, the convenience store chain will continue expanding into underserved areas, while introducing new local delicacies to enhance customer value.
Despite subsidy rationalization and market challenges, QL Resources remains cautiously optimistic about its resilience in the new financial year.
