Food manufacturing company QAF, whose brands include Gardenia and Farmland, on Tuesday reported a 72 percent slump in the second-quarter profit due to lower selling prices at Rivalea and higher foreign exchange losses.
Net profit attributable to the owners of the company fell to S$8.1 million in the three months ended June 30 from S$28.8 million in the corresponding period last year.
QAF suffered higher forex loss of $1.2 million in the quarter as compared to $0.8 million last year due to the depreciation of the group's Australian dollar denominated assets against the Singapore dollar in the second-quarter.
Revenue for the quarter edged up 1 percent to S$209.8 million.
Revenue for the Rivalea, the group's integrated producer of meat located in Australia, saw lower sales as a result of lower average selling prices offsetting the higher volume achieved, the company said in a statement after market hours.
QAF's bakery division achieved overall increase in sales through the successful launch of new products and increased market penetration.
However, profitability in the bakery segment was affected by higher cost, in particular distribution cost as a result of higher oil prices as well as higher sales volumes.
Shares in the company ended down 0.4 percent at S$1.3 on the Singapore Exchange. The stock has lost 6 percent so far this year.