KUALA LUMPUR: Genting Plantations Bhd
(GenP) posted a higher net profit of RM323.06 million for the financial year ended Dec 31, 2024 (FY2024) compared to the RM253.49 million recorded in the preceding year.
Revenue, however, was marginally lower at RM2.94 billion against RM2.97 billion in FY2023, primarily attributed to lower sales volume at the downstream manufacturing segment, it said in a Bursa Malaysia filing today.
For the fourth quarter (4Q) FY2024, the group's net profit rose to RM112.05 million versus RM63.19 million a year earlier, while revenue grew to RM856.35 million from RM800.46 million previously.
The group noted that fresh fruit bunches (FFB) production for FY2024 declined slightly year-on-year, impacted by adverse weather conditions and a lower cropping trend.
Additionally, its ongoing replanting programme in Malaysian estates contributed to a further decline in production.
"Despite this, GenP achieved higher crude palm oil and palm kernel prices, with crude palm oil averaging RM3,866 per tonne and palm kernel at RM2,519 per tonne in FY2024," it said.
Looking ahead, the group will monitor its core plantation segment, which largely depends on palm product price movements and FFB production.
"In the near term, palm oil prices are expected to remain supported by constrained supply, which is anticipated to persist until 1Q FY2025, as well as higher festive season demand and the gradual implementation of a higher biodiesel mandate in Indonesia, are also contributing factors,” it said.
However, GenP cautioned that the price premium of palm oil over soybean oil may affect its competitiveness, potentially exerting downward pressure on palm oil prices.
"Barring any adverse weather conditions, the group anticipates a better harvest for 2025, supported by additional harvesting areas and the maturation of existing plantations into higher-yielding stages, particularly in Indonesia," it added.
Meanwhile, GenP has declared a final single-tier dividend of four sen per ordinary share for FY2024, along with a special single-tier dividend of 13 sen per ordinary share. - Bernama
