JPG said revenue growth was mainly due to increases in revenue from selling crude palm oil and palm kernel.
PETALING JAYA: Johor Plantations Group Bhd (JPG) will continue to focus on optimising its operational efficiency, especially on improving yield, mechanisation, plant efficiency and cost control.
This, the company said in a filing with Bursa Malaysia, is despite the uncertainties in the external environment.
“The global production of oilseeds, such as soybeans, is expected to be volatile amid adverse weather conditions. In Brazil, potential disruptions loom over soybean production, where floods could hamper harvesting activities.
“Similarly, the production of oilseed in Argentina might be disrupted by the recent strike organised by the workers’ union in the middle of the harvesting period.”
For its first quarter ended March 31, 2024 (1Q24), JPG’s net profit rose to RM49.97mil from RM23.40mil in the previous corresponding period, while revenue grew to RM294.91mil from RM251.98mil a year earlier.
JPG said revenue growth was 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 18.5% to RM255.80mil in 1Q24, compared to RM215.87mil recorded in the previous corresponding quarter, due to higher CPO delivered during 1Q24.
“This was partially offset by a lower selling price.”
Meanwhile, JPG’s revenue from the sale of PK increased by 12.8% to RM37.47mil in 1Q24, compared to RM33.21mil in the previous corresponding period due to higher PK selling price and improved volume of PK delivered.
Additionally, JPG’s basic earnings per share stood at 2.45 sen in 1Q24, compared with 1.30 sen previously.
Commenting on the results, JPG managing director Mohd Faris Adli Shukery said he was pleased to start the year with a strong performance.
“Our growth in revenue and profit is the result of our successful initiatives in maximising operational efficiency, enhancing digitalisation and mechanisation in our production processes, and implementing cost controls throughout the group.
“Furthermore, our initial public offering (IPO) and upcoming listing on the Main Market of Bursa Malaysia on July 9, 2024 marks the next evolutionary milestone for us as we drive sustainable growth and long-term value for our stakeholders.”
Moving forward, Mohd Faris said JPG remains committed to its mission, which is to “produce sustainable essentials for mankind while adhering to the strict principles of transparency and traceability.”
Following the IPO exercise, Mohd Faris said JPG’s business roadmap for growth will focus on enhancing the group’s core businesses as a fully integrated oil palm producer.
“The group will leverage its strong position in the upstream segment to expand into the downstream business – a strategic move that was recently initiated through a joint venture with Japan-based Fuji Oil Asia Pte Ltd.
“A core component of this joint venture is the development of a downstream refinery as part of an integrated sustainable palm oil complex (iSPOC) in the Pasir Logok Estate.”
He added that the iSPOC, which will also house a palm oil mill, a kernel crushing plant, a bio-energy power plant and an animal feedmill plant, will be powered by renewable energy.
