KUALA LUMPUR, Feb 25 (Bernama) -- IOI Corporation Bhd’s (IOI Corp) net profit fell by two-thirds to RM111.1 million in the second quarter ended Dec 31, 2024 (2Q FY2025) from RM335.4 million in the year-ago quarter despite a stronger contribution from the plantation segment.
The group’s performance was dragged down by a net foreign currency translation loss on foreign currency-denominated borrowings of RM210.0 million during the quarter under review compared with a net foreign currency translation gain of RM33.3 million previously.
IOI Corp said the plantation segment’s profit before tax surged 56 per cent year-on-year to RM498.1 million in 2Q FY2025 on the back of higher crude palm oil (CPO) and palm kernel prices realised as well as lower cost of production.
Revenue rose to RM2.97 billion against RM2.39 billion previously, the group said in a filing with Bursa Malaysia today.
The group has declared a dividend of 5.0 sen per share (2Q FY2024: 4.5 sen), payable on March 24, 2025.
On its prospects, IOI Corp said the fresh fruit bunches (FFB) production is projected to recover strongly over the next three months compared to the third quarter (3Q) of FY2025 as the weather improves and the trees emerge from the low production season.
“Combined with the forecast good CPO price, we maintain a positive outlook on the plantation segment’s financial performance for the remaining periods of FY2025,” it said.
IOI Corp noted that CPO prices have been volatile over the past few months, dropping from a high of over RM5,000 per tonne to below RM4,200 per tonne before recently rebounding to about RM4,500 per tonne.
However, moving forward, prices are expected to be supported by factors such as anticipated low CPO inventory level, rising demand ahead of Ramadan and the implementation of Indonesia’s B40 biodiesel mandate, it said.
“We expect CPO prices to stay elevated at more than RM4,200 per tonne over the next three months,” it added.
-- BERNAMA
