KUALA LUMPUR: Sime Darby Plantation Bhd
expects to perform satisfactorily in 2023 as the labour supply issue in Malaysia eases with the arrival of more foreign workers.
The group had experienced challenges in fresh fruit bunch (FFB) production in Malaysia, the impact of which was partially compensated by better production in its operations in Indonesia as well as Papua New Guinea and the Solomon Islands.
"The group anticipates that with the expected arrival of a full complement of workers by the end of June 2023, its Malaysian operations will see an improved performance in FY23," it said in a statement.
At the same time, Sime Darby Plantation also expects crude palm oil (CPO) prices to hold at current levels for the first quarter of 2023 on the back of continued strong demand.
It said this was, in part, owing to the considerable price advantage when compared to alternative oils and supply concerns resulting from Indonesia’s anticipated higher biodiesel mandate as well as tighter export policies.
For the financial year ended Dec 31, 2022, Sime Darby Plantation recorded a net profit of RM2.49bil, representing an earnings per share of 36 sen, up from RM2.26bil or 32.60 sen per share in the previous year.
The group reported revenue of RM21.03bil during the year as compared with RM18.7bil in 2021.
According to the group, the strong showing was underpinned by a strong a performance by the group's downstream operations, Sime Darby Oils, which achieved a 61% year-on-year surge in profit before interest and tax to RM859mil.
Meanwhile, higher average realised crude palm oil (CPO) price, a 20% increase on the previous year, mitigated the 10% decline in fresh fruit bunch (FFB) production.
For the quarter ended Dec 31,2022, the group’s net profit increased 20% to RM562mil, despite a 2% and a 4% decline in FFB production and realised CPO prices respectively as compared to the previous year's corresponding period.
Revenue for the quarter was up 2.16% to RM5.67bil from RM5.55bil in 4QFY21.
For its final payout, the group declared a dividend of 6.04 sen a share, which brings its full-year payout to 16.04 sen a share.
Commenting on the performance, group managing director Mohamad Helmy Othman Basha said the group has emerged from the pandemic stronger and with a more exciting outlook.
"We have launched our Net Zero roadmap to achieve clear goals and targets by 2030 and 2050. A new drive to mechanise, automate and digitalise have delivered promising results.
"And of course, the tremendous effort undertaken by my colleagues across the Group to address the US Customs and Border Protection’s findings has delivered results, restoring our reputation as a leader in all areas of sustainability," he said.
Separately, Sime Darby Plantation announced in a filing with Bursa Malaysia that Datuk Seri Amir Hamzah Azizan has been appointed a member of its sustainability committee.
It said the members of the committee, which comprise exclusively of non-executive directors, also include Datuk Halipah Esa, Datuk Idris Kechot and Datuk Seri Nik Norzrul Thani Nik Hassan Thani.
