1. **Lead Paragraph**: QAF Ltd posted a net profit of S$1.9 million for the six months ended Jun 30, 2026, down 54 per cent year-on-year after booking S$10 million of one-off costs tied to the closure of its Singapore bakery plant and a S$3.9 million non-cash impairment on its Malaysian joint venture investment.

2. **Key Metrics**: Earnings per share slipped to 0.3 Singapore cent from 0.7 cent a year earlier. The board declared an interim tax-exempt cash dividend of 1 cent per share, unchanged from last year; the payment and books-closure dates will be announced later.

3. **Performance Drivers**: • Group revenue was broadly stable at S$306.7 million (H1 2025: S$306.1 million). • The Bakery division, QAF’s largest contributor, generated S$218.0 million, easing 1 per cent YoY, while Distribution & Warehousing rose 4 per cent to S$82.7 million. • Segment EBIT came in at S$9.1 million for Bakery (-15 per cent YoY) and a loss of S$0.7 million for Distribution & Warehousing, whereas Investments & Others earned S$3.5 million, buoyed by foreign-exchange gains. • Group EBITDA before exceptional items climbed 37 per cent to S$23.9 million, helped by lower utilities and advertising expenses and a swing to a S$4.3 million forex gain.

4. **Headwinds**: Profitability was dragged by S$10 million of exceptional charges related to the transfer of production from Singapore to Malaysia, comprising retrenchment payouts, early contract termination costs and a S$2.5 million asset write-down. Additional pressure came from higher repairs, maintenance and distribution costs, as well as the enlarged impairment on the Gardenia Bakeries (KL) joint venture.

5. **Strategic Moves**: The group is progressing with plans to consolidate its bakery manufacturing in Malaysia to enhance scale and cost efficiency. Management signalled further transition spending and potential future impairments or reversals on the Malaysian joint venture, depending on market conditions, currency movements and interest rates. Despite near-term costs, QAF said it remains in a net cash position of S$178.2 million and will pursue product launches and efficiency initiatives to mitigate margin pressures amid uncertain geopolitical and economic conditions.