10 Quick Things That Investors Should Know About QAF Limited’s Latest Earnings

Recently, QAF Limited (SGX: Q01) released its 2017 fourth quarter (4Q FY17) earnings.

As a quick introduction, QAF is a food production company. It is involved in bakery operations, pork production, food processing and distribution, feed milling, food trading and distribution, food manufacturing, and wine distribution. Some of the more prominent brands the company has in its portfolio are Gardenia, Cowhead and Farmland.

Here are 10 things that investors should know from its latest earnings update:

1. Revenue for the quarter declined 2.0% year-on-year to S$214.4 million. Full-year revenue declined 5% year-on-year to S$848.6 million.

2. Quarterly operating profit declined from a profit of S$6.7 million last year to a loss of S$0.6 million. Full-year operating profit tumbled 48% year-on-year to S$35.6 million.

3. Net profit for the quarter plunged 96% year-on-year to S$2.1 million. Full-year net profit came down 74% year-on-year to S$31.8 million.

4. Full-year earnings per share (EPS) declined 74% year-on-year to 5.6 cents. Excluding one-off items (gain of disposal in FY16), EPS would have fallen by 49% year-on-year.

5. Full-year operating margin came down from 7.6% in FY16 to 4.2% in FY17.

6. In FY17, QAF generated net cash from operating activities of S$62.0 million, down from S$101.8 million a year ago.

7. QAF had S$113 million in borrowings, as at 31 December 2017, up from S$86 million, as at the end of 2016.

8. Cash and cash equivalents stood at S$136 million, as at 31 December 2017, up from S$105 million, as at 31 December 2016.

9. Working capital wise, inventory increased from S$60.2 million in 2016 to S$69.4 million in 2017 while trade receivables remained almost flat during the period.

10. The company proposed a final dividend per share of four cents. Including the interim dividend per share of one cent, total dividend payout for FY17 would be five cents.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.