Apollo Food cautious about challenges ahead

PETALING JAYA: Apollo Food Holdings Bhd has cautioned that it is facing a challenging environment, with the uncertainties of raw materials costs and labour shortage as well as related costs.

“The group will implement prudent measures and improve operational efficiency to sustain the business and results,” said Apollo Food in a filing with Bursa Malaysia yesterday.

The group is involved in manufacturing and distributing compound chocolate confectionery products and layer cakes, with sales presence in Malaysia, Singapore, Indonesia, Thailand, the Philippines, Vietnam, China, Hong Kong, Taiwan, Japan, India, Middle East and Indian Ocean Islands.

For its first financial quarter ended July 31, 2022, net profit more than 26-fold to Rm4.56mil, from a meager RM172,000 a year earlier while revenue was 42.2% higher at Rm55.46mil.

Earnings per share was 5.7 sen versus 0.22 sen a year earlier.

Apollo Food said the improved business results was mainly due to higher sales in both local and export markets.

In its latest annual report, Apollo Food also noted that in view of inflation and the volatility of the ringgit against foreign currencies, raw materials’ prices are expected to be unstable in the financial year ending April 30, 2023.

The group said it would implement prudent measures and improve operational efficiency so as to sustain current profit margins without compromising the products’ quality.

“To improve its revenue stream, the group will put more efforts in focusing and enhancing its brands recognition and products’ varieties for new business opportunities,” said Apollo Food.