United Malacca 1QFY27 weighed by weaker FFB production


PETALING JAYA: United Malacca Bhd expects fresh fruit bunch (FFB) production to remain stable for the financial year ending April 30, 2027 (FY2027), supported by a better plantation age profile and improving operational efficiency, although an anticipated super El Nino could affect production in the second half.

Assuming crude palm oil (CPO) prices and foreign exchange exposure remain at current levels, the group expects satisfactory results for FY2027.

For its first quarter ended July 31, 2026 (1QFY27), United Malacca's net profit fell 15.8% to RM31.8mil, mainly as weaker FFB production in Malaysia weighed on its plantation operations.

Revenue declined 6% to RM180.1mil from RM191.6mil a year earlier, while profit before tax fell 12% to RM45.2mil.

The group's Malaysian plantation operations recorded a 48% decline in profit to RM24.3mil, as FFB production dropped 32% to 72,814 tonnes and unit production costs increased.

This was despite average CPO prices in Malaysia rising 13% to RM4,512 per tonne.

The weaker Malaysian performance was partly cushioned by Indonesia, where plantation profit surged to RM20mil from RM3.6mil as FFB production increased 43% and unit production costs declined.

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