Image Credits: The Edge Malaysia
Apollo Food Holdings Bhd (AFHB) has expressed caution regarding its outlook for the remainder of the financial year, citing ongoing concerns over adverse price fluctuations of raw materials. In a recent filing with Bursa Malaysia, the company, which specializes in compound chocolates, chocolate confectionery products, and cakes, indicated that it will closely monitor these challenges and implement strategies to mitigate associated risks.
For the first quarter ending July 31, 2024, AFHB reported a net profit of RM9.68 million, up from RM7.64 million in the same period last year. This growth was largely attributed to higher domestic and export sales, signaling robust demand for the company’s offerings. Revenue also saw a significant increase, reaching RM72 million compared to RM58.28 million a year earlier, reflecting strong performance in both domestic and international markets.
The basic earnings per share improved to 12.10 sen from 9.55 sen in the prior year, underscoring AFHB’s positive financial trajectory. Despite these encouraging results, the company remains vigilant in light of global macroeconomic uncertainties that may impact its operations.
In its statement, AFHB emphasized its commitment to fortifying core operations while navigating current uncertainties to achieve sustainable long-term growth. The board expressed optimism that, barring unforeseen circumstances, satisfactory results are expected for the financial year ending April 30, 2025.
The potential impact of fluctuating raw material prices is a significant concern for AFHB, as these fluctuations can affect production costs and profitability. The company’s proactive approach to monitoring market conditions and implementing risk management strategies will be critical in addressing these challenges.
As AFHB prepares to face these potential hurdles, industry stakeholders will closely watch its efforts to maintain growth and stability amidst fluctuating market dynamics. The company’s ability to adapt and respond to changing conditions will play a crucial role in its future success.