PETALING JAYA: Sabah-based plantation company TSH Resources Bhd
posted a 12% increase in core pre-tax profit of RM140.1mil for the nine months ended Sept 30, 2024 from RM125.4mil a year ago.
The better performance was due to stronger contributions from an associate company, improved performance of joint ventures and lower interest costs.
However, revenue for the nine-month period fell to RM726.8mil from RM805.6mil a year ago, mainly dragged by reduced fresh fruit bunch (FFB) production, which was impacted by natural biological yield cycles following consecutive high-yield years.
The company said in a statement that operational disruptions at one of its plantation entities in Indonesia, stemming from a social dispute related to the Community Plantation Development Scheme, also contributed to the decline.
In the third quarter just ended, its net profit rose to RM33.1mil from RM29.5mil a year earlier despite a drop in revenue to RM231.9mil from RM298.7mil.
TSH said the Indonesian court on Nov 13 ruled in its favour, affirming its full compliance with Plasma, a programme implemented in Indonesia which requires large plantation companies to allocate a portion, typically 20%, of their land for smallholders to develop plantations .
“This ruling is expected to expedite the resolution of the dispute soon, enabling the group to resume normal operations,” it said.
