IOI Corp reported second-quarter revenue of RM2.97bil compared to RM2.4bil in 2Q24.
PETALING JAYA: IOI Corp Bhd
said its bottomline was negatively impacted by foreign exchange losses and fair value losses in the second quarter of financial year ended Dec 31, 2024 (2Q25), despite an improved performance in its plantations business.
In 2Q25, the group said net profit was RM111.1mil, as compared to RM335.4mil in the year-ago quarter, which translates to a slump in earnings per share to 1.79 sen from 5.41 sen previously.
IOI Corp reported revenue of RM2.97bil during the quarter under review as compared to RM2.4bil in 2Q24.
Announcing its results in a filing with Bursa Malaysia yesterday, the group said its underlying pre-tax profit of RM504.3mil during the quarter was 31% higher year-on-year (y-o-y) than the pre-tax profit of RM383.6mil in 2Q24.
This was mainly owing to higher contribution from the plantations segment, partially offset by lower contribution from the resource-based manufacturing segment.
However, the group said pre-tax profit was eroded by non-underlying items, comprising a net foreign currency translation loss of RM189.5mil from foreign currency denominated borrowings and deposits, a RM800,000 net fair value loss on biological assets and RM93.5mil net fair value loss on derivative financial instruments.
In the six-month period ended Dec 31, 2024, IOI Corp said net profit was RM821.8mil, up from RM639.4mil in the first six months of financial year 2024 (6M24), while revenue rose to RM5.64bil from RM4.6bil in the previous corresponding period.
The group declared a first interim dividend of five sen per share, going ex on March 11, 2025, and payable on March 24, 2025. On its outlook, IOI Corp projects fresh fruit bunch production to recover strongly over the next three months as the weather improves and the trees emerge from the low production season.
“Combined with the forecast good crude palm oil price, we maintain a positive outlook on the plantation segment’s financial performance for the remaining periods of financial year 2025 (FY25),” said the group.
In the refinery and commodity marketing sub-segment, the group expects competitive pricing from Indonesia will put pressure on its refining margin, while the operating environment in the oleochemical sub-segment is expected to remain challenging.
The group’s speciality fats sub-segment, represented by associate firm Bunge Loders Croklaan (BLC), is expected to see product margins, particularly for cocoa butter equivalents, remain strong in the remaining quarters of FY25.
“However, potential US tariffs may disrupt the import of raw materials into BLC’s plants in the United States and affect product margins there,” it added.
Overall, the group said it expects its operating and financial performance for the remaining quarters of FY25 to be satisfactory.
