QAF's Q3 net profit surges 84% to $19.4m

Thanks to healthy contributions from the group's segments.

Food company QAF continued to record positive underlying earnings growth with PATMI up 84% to S$19.4m in the quarter ending in September.

According to OCBC Investment Research, aside from the deconsolidation of results from GBKL since Apr-16, underlying sales had increased for all segments, while both Bakery and Rivalea (Primary Production) also continued to enjoy lower raw material costs.

At this juncture, OCBC predicts that wheat and coarse grains prices may continue to look favourable for the group due to ample global supplies.

"The projection by ABARES for wheat crop in Australia is set to reach about 28.1mmt, albeit some recent concerns due to frost damage. We would look out for any revised projections when the harvest season starts in Dec for Australia. The International Grain Council (IGC) had also raised its global grains (wheat and coarse grains) production to 2,084mmt, 4% higher vs. last year," it said.