TH Plantations 3Q Net Profit Rises To RM21.55 Mln

KUALA LUMPUR, Nov 26 (Bernama) -- TH Plantations Bhd’s (THP) net profit for the third quarter (3Q) of 2024 rose to RM21.55 million from RM17.55 million last year.

Revenue rose by 16.32 per cent to RM251.99 million from RM216.64 million previously, driven by stronger performance in oil palm plantations, supported by increased sales volumes of crude palm oil (CPO) and palm kernel (PK), alongside higher average realised prices for both products.

For the cumulative nine months, net profit climbed to RM44.99 million from RM34.34 million, and revenue jumped to RM607.32 million from RM535.52 million.

bootstrap slideshow

In a statement released after the filing of the 3Q results on Bursa Malaysia, the plantation company reported impressive financial results for its nine-month period ending Sept 30, 2024; with a profit before tax (PBT) of RM95.12 million.

“That is a significant 56.06 per cent increase compared to RM60.95 million recorded in the same period last year. This growth was primarily driven by higher revenue from the increased sales volume and improved average realised prices for CPO and PK.

“In addition, the improved operational efficiencies for the nine months have resulted in a 69 per cent increase in the gross profit of RM180.76 million from RM107.06 million compared to the same period last year,” it said.

bootstrap slideshow

THP said that fresh fruit bunches (FFB) production increased by 10.3 per cent from 539,123 tonnes (mt) to 594,416 mt, contributed by young mature areas and better crop trends, especially from Peninsular Malaysia.

“The FFB yield per hectare also improved by 11.3 per cent. The gross profit margin improved by 48.9 per cent, from 19.99 per cent to 29.76 per cent; while the PBT margin also improved by 37.6 per cent from 11.38 to 15.66 per cent,” it said.

Chief executive officer Mohamed Zainurin Mohamed Zain said THP is on track to deliver value to the shareholders as the PBT for the nine months has already surpassed the FY2023 full-year PBT of RM85.91 million.

“Coupled with encouraging CPO prices towards the remaining of the year, we are looking forward to a better performance for THP for 2024.

“The group’s five-year Strategic Business Plan or Al-Falah 22/22 initiatives will continue to be the driving force in achieving greater results through operational efficiencies, improved agronomic practices, replanting, and accelerated mechanisation efforts,” he said.

Looking ahead, THP said that it remains cautiously optimistic regarding the market outlook.

“Positive market dynamics including tight supply of palm oil, low stock levels, and biodiesel planning and updates in 2025 have supported the industry since October 2024.

“The group expects these trends to persist until year-end, contributing positively towards the overall performance,” it added.

-- BERNAMA