PETALING JAYA: Johor Plantations Group Bhd will remain committed to producing high-quality sustainable products.
In a filing with Bursa Malaysia, the company said it will also continue to drive operational efficiency, particularly by improving yield, oil extraction rate and plant efficiency, while accelerating its mechanisation and digitalisation efforts.
In its third quarter ended Sept 30, 2024 (3Q24), Johor Plantations’ net profit rose to RM77.11mil from RM68.28mil in the previous corresponding period, while revenue grew to RM404.13mil from RM341.59mil a year earlier. Basic earnings per share stood at 3.93 sen versus 3.79 sen previously.
Johor Plantations said the higher revenue was due to increases in revenue from selling crude palm oil (CPO) and palm kernel.
“Our revenue from the sale of CPO increased by 16% to RM339.46mil for 3Q24, compared to RM292.54mil 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 palm kernel increased by 36.5% to RM61.43mil for 3Q24, compared to RM44.99mil recorded in the previous corresponding quarter due to a higher palm kernel selling price and a higher volume of palm kernel delivered.”
Additionally, the group said revenue from trading and support services decreased by 20.6% to RM2.90mil in 3Q24 compared to RM3.65mil recorded in the previous corresponding quarter.
“This decrease is primarily attributed to reduced sales of agricultural machinery, equipment and spare parts, particularly due to lower order volumes for an upgraded mechanical buffalo model compared to 3Q23.”
Johor Plantations said profit for the quarter was recorded at a higher value by RM8.50mil due to a higher profit resulting from the contribution of revenue from the upstream segment.
For the nine-month period ended Sept 30, 2024, net profit rose to RM176.82mil from RM104.33mil in the previous corresponding period, while revenue grew to RM1.06bil from RM861.18mil a year earlier.
Johor Plantations said Malaysia’s palm oil inventories as of the end of September 2024 rose by 6.9% month-on-month to 2.01 million tonnes, as lower local consumption outweighed a modest increase in exports and reduced production.
“Despite higher inventory levels, CPO prices remained resilient in the third quarter, trading between RM3,800 per tonne and RM4,200 per tonne.
“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 Budget 2025 on the plantation industry.”
Barring any unforeseen circumstances, the group said it expects the performance for the financial year to be satisfactory.
