Jaya Tiasa returns to profitability

Good showing: Jaya Tiasa’s timber products are seen in this file picture. Its timber division turned around in the fourth quarter.

PETALING JAYA: Jaya Tiasa Holdings Bhd returned to profitability in the fourth quarter ended June 30, 2021, driven by stronger revenue from the oil palm division and the turnaround in its timber division.

A lower provision for impairments in the three-month period also boosted the bottomline.

In a filing with the stock exchange, the group said it recorded a net profit of RM18.8mil in the fourth quarter, as compared to a net loss of RM34.67mil in the previous corresponding quarter. The group’s overall revenue rose 44.27% year-on-year (y-o-y) to RM198.9mil from RM137.86mil.

The oil palm division revenue jumped 59% y-o-y, although the revenue of the timber division declined by 7% y-o-y.

For the fourth quarter, Jaya Tiasa recorded an earnings per share of 1.94 sen. No dividend was declared for the quarter.

For the financial year of 2021 (FY21), Jaya Tiasa also posted a net profit of RM31.4mil. In the previous year, the group suffered a net loss of RM72.09mil. Revenue, on the other hand, improved slightly by 3.1% y-o-y to RM723.41mil.

“Revenue from the oil palm division for the current financial year-to-date improved by 16% when compared to the corresponding financial year-to-date due to higher average selling price of fresh fruit bunches and crude palm oil (CPO).

“For the timber division, revenue declined by 32% in the current financial year-to-date as a result of 4% and 74% decrease in sales volume of log and plywood respectively,” the group said.

The group added that its fourth quarter and FY21 results were affected by the fair value loss on commodity futures contracts. “The group had squared off all commodity futures contracts during the financial year,” it said. Looking ahead, Jaya Tiasa expects its oil palm division to perform satisfactorily in the current financial year, in view of the strong CPO prices.

“The group will stay vigilant and focus on yield and operational efficiency amid continuous outbreaks of Covid-19 and prolonged labour shortage throughout the industry,” it said.

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