QAF

QAF: 1Q13 revenues increased 4% y/y to $250.8m, earnings increased 14% y/y to $11.5m. The improvement in earnings were due to a 36% drop in taxes as the income made by subsidiaries benefited from the tax relief. Operating profits, however, took a dip by 6% y/y to $15.4m due to the spike in grain prices resulting in an 8% increase in costs of materials. Margins in turn, came down to 6.1% from 6.8% in 1Q12. QAF expects new product launches in its Bakery operations to result in higher sales, as well as the continued growth in sales volume from Rivalea- its fully integrated producer of meat located in Australia. QAF expects its operating costs to remain high due to the sustaining level of raw materials as well as other operating costs. NAV/share increased 4.0% to $0.778, QAF last closed at $0.955.