IOI Corp’s fourth-quarter net profit jumps 30% to RM46.6m

15 Aug 2019 / 21:18 H.

PETALING JAYA: IOI Corp Bhd reported a 30.2% jump in net profit to RM46.6 million for the fourth quarter ended June 30, 2019 against RM35.8 million recorded in the previous corresponding period, attributed to lower net foreign currency translation loss on foreign currency denominated borrowings and deposits.

However, its revenue declined 3.5% to RM1.74 billion from RM1.8 billion.

IOI told Bursa Malaysia that its plantation segment profit contracted 33% to RM84.5 million from RM125.3 million, mainly due to lower crude palm oil (CPO) and palm kernel (PK) prices realised.

Average CPO and PK prices realised for Q4 were RM1,988/metric ton (mt) and RM1,127/mt, respectively.

Meanwhile, the resource-based manufacturing segment registered a profit of RM88.3 million, an increase of 3.9% against the RM85 million recorded in the same quarter a year ago.

For the 2019 financial year, IOI’s net profit slumped 79.4% to RM631.7 million against RM3.06 billion in its previous financial year, dragged down by lower operating profit and total net foreign currency translation loss on foreign currency denominated borrowings and deposits.

Its revenue slipped slightly by 0.4% to RM7.39 billion from RM7.42 billion.

Moving forward, IOI anticipates palm oil price to recover gradually in the new financial year 2020 as palm oil stocks decline from record high level in December 2018.

“The palm oil price will be supported by increased exports to major consuming countries such as India and China, higher demand from the biodiesel industry in Malaysia and Indonesia, and moderate production increase due to the dry weather,” it said.

It also expects total fresh fruit bunches production to improve slightly in 2020 with the higher production from the young Indonesian plantings, offsetting the temporary loss from the higher replanting rate in our Sabah plantations.

“Coupled with the anticipated improvement in crude palm oil price, we expect the plantation segment’s performance to improve in the coming financial year.”

For the resource-based manufacturing segment, the group foresees the oleochemical sub-segment will continue to perform relatively well due to the moderately low feedstock cost.

TAGS

email blast