Subur Tiasa net losses widen in fourth quarter

  • Business,Corporate News,Commodities,Plantations,Palm Oil
  • Friday, 28 Sep 2018

In a filing with Bursa Malaysia, Country View said that the acquisition

PETALING JAYA: SUBUR TIASA HOLDINGS BHD ended its financial year 2018 (FY18) with a fourth consecutive quarter of net losses on the back of a slump in its topline.

The Sibu-based timber firm told Bursa Malaysia that its net loss in the fourth quarter ended July 31 widened to RM13.17mil from RM8.59mil in the previous corresponding quarter.

Revenue was down 39% year-on-year (y-o-y) to RM70.4mil, as its oil palm and timber businesses recorded lower toplines.

For context, on a y-o-y basis, the group’s oil palm segment saw a 7% lower revenue to RM25.16mil. Meanwhile, revenue from the timber business more than halved to RM42.77mil.

Subur Tiasa did not declare any dividends for the quarter in review. Loss per share was seven sen.

Cumulatively for FY18, the company registered a higher net loss of RM19.58mil, as compared to a net loss of RM16.75mil a year earlier. This marks the third year the company is financially in the red.

Revenue for the 12-month period reduced by 36% y-o-y to RM322.19mil.

While the timber segment saw a 47% y-o-y fall in revenue due to lower export sales volume, the oil palm business’ topline improved by 13% y-o-y on the back of fresh fruit bunch (FFB) sales volume.

Commenting on its prospects, Subur Tiasa said the performance of its oil palm segment would continue to contribute positively to the group.

The expected outlook for the oil palm business will likely be driven by the peak crop season of FFB production, coupled with an increasing area of more matured palm trees.

“Timber prices are expected to sustain in view of a lower production of logs across the timber industry in Sarawak and prevailing tight supply of logs in the market.

“The group is committed to a strategic business transformation, optimisation of available resources, improving FFB yield and implementing a cost competitiveness programme,” it said.

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