JOHOR PLANTATIONS' 3Q NET PROFIT RISES TO RM77.11 MLN

KUALA LUMPUR, Nov 13 (Bernama) -- Johor Plantations Group Bhd’s net profit rose to RM77.11 million for the third quarter ended Sept 30, 2024 (3Q 2024) from RM68.28 million in the same period last year. 

In a filing with Bursa Malaysia today, it said revenue increased by 18.3 per cent to RM404.13 million in 3Q 2024 from RM341.59 million previously, mainly due to increases in revenue from selling crude palm oil (CPO) and palm kernel (PK).

“Our revenue from the sale of CPO increased by 16 per cent to RM339.46 million in 3Q 2024, compared to RM292.54 million recorded in the previous corresponding quarter, due to a higher CPO selling price and a higher volume of CPO delivered.

“Our revenue from the sale of PK increased by 36.5 per cent to RM61.43 million in 3Q 2024, compared to RM44.99 million recorded in the previous corresponding quarter, due to a higher PK selling price and a higher volume of PK delivered,” it said. 

For the nine months ended Sept 30, 2024, the group’s net profit grew to RM176.82 million from RM104.33 million a year earlier, while revenue was higher at RM1.06 billion compared with RM861.18 million previously.

Regarding prospects and targets, the group said that CPO prices remained resilient in the third quarter, trading between RM3,800 a tonne and RM4,200 a tonne, despite higher inventory levels which rose by 6.9 per cent month-on-month to 2.01 million tonnes as of the end of September 2024. 

“In the coming months, CPO prices may be influenced by the supply and demand dynamics of palm oil in Malaysia and Indonesia, regional weather conditions, and the implications of the Malaysian Budget 2025 on the plantation industry,” it said. 

The group believes that the plantation industry welcomes the European Commission’s decision to postpone the European Union Deforestation Regulation (EUDR) by 12 months, as it provides affected industries with more time to comply with the requirements and facilitates a smoother transition for business.

“However, geopolitical tensions, especially in the Middle East, are expected to add volatility to CPO prices in the near term,” it added. 

Barring any unforeseen circumstances, the group expects the performance for the financial year to be satisfactory. 

The board has declared a second interim dividend of 1.25 sen per share for the quarter, which is payable on Dec 17, 2024.

Meanwhile, in a statement, its managing director Mohd Faris Adli Shukery said the group will focus on developing new income streams that will be realised through the construction of its Integrated Sustainable Palm Oil Complex, marking the entry into the downstream segment.

“As part of this venture, we are making a significant investment in partnership with Japan’s Fuji Oil Group to build a refinery capable of producing high-value specialty oils and fats.

“With a strong market presence for sustainable and quality products, this downstream refinery complements our existing market reputation by granting access to the specialty oil and fats market, providing additional margins to the group,” he added.

-- BERNAMA