QAF Ltd reported a 16 % year-on-year rise in net profit to S$40.3 million for the 12 months ended 31 Dec 2025, driven mainly by an S$8.7 million non-cash reversal of impairment on its 50 %-owned Malaysian joint venture, Gardenia Bakeries (KL) Sdn Bhd (GBKL).

Group revenue slipped 0.4 % year-on-year to S$633.6 million as higher Bakery and Distribution turnover in constant-currency terms was offset by adverse exchange rates. Earnings per share increased to 6.9 Singapore cents from 6.0 cents a year earlier.

The board declared a final tax-exempt dividend of 4 Singapore cents a share, maintaining the full-year payout at 5 cents together with the 1-cent interim dividend paid in September. Payment and book-closure dates will be announced later; the scrip dividend scheme will not apply.

By segment, the Bakery division contributed S$456.2 million in revenue (flat YoY) and S$24.6 million in EBIT, while Distribution & Warehousing generated S$165.2 million in revenue (-2 % YoY) and S$3.4 million in EBIT. The investment in GBKL added S$15.4 million to pre-tax earnings, up from S$4.7 million a year earlier after the impairment reversal.

Operating costs were mixed: staff expenses rose 4 % following minimum-wage adjustments in Malaysia and volume growth in the Philippines, but utilities fell 9 % on lower electricity prices. Foreign-exchange movements swung to a S$0.7 million gain from an S$8.8 million loss, cushioning higher logistics and vehicle-rental outlays.

Cash flow from operations reached S$53.2 million, funding S$17.8 million of capital expenditure and S$28.8 million of dividends. Net cash strengthened to S$190.9 million, while gross gearing (including lease liabilities) eased to 0.05 time.

Looking ahead, QAF expects operating-cost pressures to persist despite stabilising raw-material prices and notes that currency fluctuations remain unpredictable amid heightened geopolitical risks. Management plans to defend margins through product-mix adjustments and efficiency initiatives, while pursuing new product launches and channel expansion to drive growth.