KUALA LUMPUR: Ta Ann Holdings Bhd
’s palm oil production is trending upwards as it enters the second half of the year with fresh fruit bunches (FFB) production cycle at its peak.
“With anticipation of tight supplies of vegetable crops due to dry weather in the Black Sea region, as well as higher consumption of biofuels in diesel in Indonesia, the crude palm oil (CPO) price is expected to hover only at the current level in the second half of the year,” Ta Ann said in the notes accompanying its financial results.
In the second quarter ended June 30, Ta Ann’s net profit rose 13.3% year-on-year (YoY) to RM48.7mil, or earnings per share of 11.06 sen against RM42.9mil, or 9.76 sen previously.
Revenue, however, fell 4.8% YoY to RM366.7mil from RM385.2mil.
Ta Ann said for the first half to June 30, it posted a higher net profit of RM92mil on revenue of RM719.1mil.
The group said that during the review period, it achieved positive improvements in palm oil production and enjoyed favourable CPO prices.
However, extreme wet weather has affected the logs and plywood production considerably.
“Coming into drier weather conditions since July 2024, the group’s timber sector logs and plywood production volumes have improved considerably. Nevertheless, the timber products prices are expected to maintain a thin profit margin,” it said.
Ta Ann continues its focus on maximising its efficiency in production and exploring on improved planting materials for replanting programmes to achieve a better yield and drive further growth in profitability.
