SHAH ALAM: QL Resources Bhd has budgeted RM300 million capital expenditure (capex) next year to expand its core food operations, managing director Chia Song Kun said.
The capex will be used to finance business plans and strengthen the value chain, Chia said.
“It will also be spent on acquisitions,” he told reporters after QL Resources’ annual shareholders’ meeting here yesterday.
The company plans to buy local plants, including a new frozen food processing plant in Kulai, Johor and expand its existing markets in Vietnam and Indonesia.
Chia expects QL Resources’ business to grow by double-digit in the next financial year. This will be fuelled by organic growth in its marine divisions in Sabah as well as recovering livestock prices.
“"We are looking forward to a double-digit growth for financial year 2015,” he said.
However, the performance of its “small” division dealing in crude palm oil, which accounts for around 15 per cent of group topline - is expected to be “less convincing” due to slipping prices, which are now at a five-year low of RM2,038 per tonne.
The company’s sales grew by 14 per cent from last year.
Revenue is up by RM311 million to RM2.46 billion or 14 per cent from financial year 2013’s RM2.15 billion. Net profit grew 21 per cent to record high of RM160 million.
QL Resource is one of the largest egg producers and surimi manufacturers in Asia.
It is building a presence in the sustainable palm oil sector with activities including milling, plantations and biomass clean energy.
On his wishlist in the upcoming 2015 Budget, Chia is hopeful for changes in aquaculture tax incentives.