PETALING JAYA: TSH Resources Bhd ’s core pre-tax profit jumped 38% to RM180mil for financial year ended Dec 31, 2017 (FY17), thanks to higher fresh fruit bunches (FFB) production and stringent cost controls.
The Sabah plantation company said it expected to sustain FFB production growth this year onwards, aided by oil palm trees with higher yielding ages in view of the increasing maturity of the trees.
TSH said core pre-tax profit for FY17 was higher than the RM130mil achieved in FY16 mainly due to the increase in FFB production by 19% to 710,105 tonnes from 595,821 tonnes in FY16.
It said the core pre-tax profit was derived after adjusting non-cash and unrealised exchange translation gain or loss.
Revenue rose 23% to RM1.07bil from RM872.30mil. It recorded gain on foreign exchange (forex) of RM16.74mil compared with a loss on forex of RM17.52mil in the previous year.
It has proposed a single-tier dividend of two sen per share for FY17.
In the fourth quarter ended Dec 31, 2017, TSH posted RM48.7mil in core pre-tax profit compared with RM48.5mil a year ago.
Net profit came in at RM21.62mil as opposed to a net loss of RM21.77mil a year ago due to loss on foreign exchange of RM39.41mil. Revenue rose 11% to RM269.95mil from RM244.30mil a year ago.
TSH said FFB production had peaked in the third quarter of 2017 compared with the fourth quarter for 2016.
It said the oil palm trees were continuing with their steady recovery after poor harvest in 2016 caused by the El Nino phenomenon.
Group chairman Datuk Kelvin Tan said the improving FFB output, coupled with cost control, would continue to lower unit cost of production and raise profitability insofar as CPO price remains at the current level. “We are confident that the performance of TSH will remain positive for year 2018,” he said.