Profit before taxation in 4Q ended Dec 31, 2019 increased by 171% to RM32mil from RM11.8mi due to higher revenue and gain on foreign exchange.
KUALA LUMPUR: TSH Resources' core profit before tax for the fourth quarter ended Dec 31,2019 jumped by 136% to RM22.51mil from RM9.54mil a year underpinned by higher revenue from its plantation business.
It said on Thursday its revenue rose by 9% to RM241.49mil from RM221.63mil a year ago mainly attributable to higher average crude palm oil (CPO) selling price.
Profit before taxation increased by 171% to RM32mil from RM11.8mi due to higher revenue and gain on foreign exchange.
Net profit rose by 77% to RM18.41mil from RM10.41mil. Earnings p[er share were 1.33 sen compared with 0.75 sen. It proposed a dividend of one sen a share.
For FY19, its core profit before tax fell by 25% to RM68.95mil from RM91.40mil in FY18 in line with the decline in revenue. Its net profit rose by 9% to RM44.03mil from RM40.46mil.
However, it recorded lower revenue of RM838.94mil, down by 7% from RM906.44mil in FY18 mainly attributable to lower average CPO and palm kernel (PK) selling prices.
On the outlook, TSH said CPO prices since the beginning of 2020 have been hovering at levels much above the 2019 average. This has provided a more favourable outlook for the oil palm sector in 2020.
“However we are conscious that CPO price and demand are susceptible to a myriad of factors affecting global trade and economy, a case in point being the current Covid-19 outbreak which had led to the recent volatility in CPO prices.
“If CPO price continues to hover at current levels, the Board anticipates the performance for financial year 2020 to be satisfactory, ” it said.
TSH said the board remains optimistic on the long term prospect of the palm oil industry due to the higher per capital income, many health qualities of palm oil and population growth, which will drive greater demand.
“Palm products segment which accounts for approximately 86% of the revenue for the group will remain the core contributor to the group profit. Management will continue its focus on the productivity and efficiency improvement to reduce unit cost of production, ” it said.
