At some point in our lives, we may have consumed the Gardenia brand of bread for breakfast, as it is a familiar household name. However, QAF Limited may sound a little more unfamiliar to us. I didn’t know about the link between these two names, until I began researching on QAF Limited.
Gardenia bread is actually produced by QAF Limited, a company whose operating segments include bakeries, primary production and trading & logistics. I had previously written about QAF Limited in May this year.
3rd Quarter Performance
QAF’s third quarter results were rather disappointing, with net profit falling by 62%. Even though revenue was flat at $212.4 million, increases in operating expenses resulted in the drastic fall in net profit. Total costs and expenses increased by only 6%, from $192.1 million to $203.9 million. But because of QAF’s low net profit margin of 3.52% compared to 9.12% last year, net profit fell by 62%.