QAF expects ‘material reduction’ in net profit for H1 2025

Business performance is affected by increased operating costs, unfavourable foreign exchange movements, and a higher non-cash impairment of its investment in its joint venture

Food manufacturer and distributor QAF expects profit to fall significantly for the half-year ended Jun 30, 2025, due to higher costs, unfavourable foreign exchange rates and increased impairment of its joint venture (JV) investment.

In a bourse filing on Thursday (Jul 3), the group said that it expects a “material reduction” in its profit attributable to owners of the company, compared with its performance in the same period last year.

While the group’s revenue for the first half of 2025 is expected to be comparable to that in H1 2024, business performance has been affected by higher operating costs, disadvantageous foreign exchange movements, and a higher non-cash impairment of its investment in its JV, Gardenia Bakeries (KL), it said.

This announcement comes after QAF lifted its profit guidance for its 2024 financial year in February, before reporting a profit of S$34.7 million for the full year. This marked a 26 per cent jump from S$27.5 million in FY2023.

Its final set of H1 2025 results is set to be released in August.

Shares of QAF closed flat at S$0.915 on Thursday, before the announcement.

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