Apollo Food’s 3QFY24 earnings surge 179 pct y-o-y to RM30 mln

KUCHING: Apollo Food Holdings Bhd’s (Apollo) net profit during its third quarter of financial year 2024 (3QFY24) which ended Jan 31 has surged by 179 per cent year on year (y-o-y) to RM30.2 million.

In a press release, the manufacturer and distributor of chocolate confectionary products and layer cakes announced that the large surge in its earnings during the quarter were due to a gain on disposal of property and a 4 per cent y-o-y increase in revenue to RM73.9 million.

For its first nine months of financial year 2024 (9MFY24) results, the group registered a revenue of RM198.2 million and a net profit of RM47.8 million.

While, the strong surge in 3QFY24 earnings was largely due to a gain on disposal of property amounting to RM18.6 million, Apollo Managing Director, Cheah Jia Ming, said, “Without the gain on disposal of properties, our performance for the nine-month period was still ahead of last year.

He added that even in the face of soft consumer spending sentiments, the group’s 9MFY24 results were still commendable and were supported by the strength of their branding and product pricing strategies.

With the higher profitability and gains on disposal recognised during the quarter, Apollo declared a second interim dividend of 50 sen per share, payable on April 24.

Apollo guided that its board has considered its future cash flow, working capital requirements and capital investment plans to strike a balance between reinvestment for growth and rewarding shareholders.

Even after this distribution, Apollo maintains a healthy cash position, which reinforces our ability to support growth plans.

“Our ability to generate strong operational cashflow, combined with our unleveraged balance sheet, positions us exceptionally well to capitalise on suitable opportunities as they arise,” Cheah commented.

Looking ahead, Cheah stated that Apollo will be exploring further expansion by developing new markets and customer segments to maximise potential, deepen their market penetration and increase sales.

“As we embark on our growth journey, we will be maintaining our listing status with a steadfast commitment to enhancing operational efficiency and an unwavering focus on product and service excellence,” he concluded.