United Malacca swings back into profit in 4Q22

KUALA LUMPUR: United Malacca Bhd swung back to profit in the fourth quarter ended April 30 (4Q22) with a net profit of RM18.72mil against a net loss of RM11.7mil in the same period a year ago, due to higher average crude palm oil (CPO) price.

Its revenue in 4Q22 rose 39% to RM147.45mil from RM106.36mil a year prior.

In a filing with Bursa Malaysia, the company said its directors declared a second interim single-tier dividend of five sen in respect of the financial year ended April 30, 2022 (FY22) and a special single-tier dividend of five sen.

The second interim single-tier dividend and the special single-tier dividend will be paid on Aug 19.

United Malacca said together with the first interim single-tier dividend of five sen which was paid on Jan 21, the total single-tier dividend for FY22 is 15 sen.

During the quarter, United Malacca said its Malaysian operations recorded a plantation profit of RM146.9mil which was 229% higher than RM44.6mil in the preceding year.

Excluding depreciation, fair value changes on biological assets (net) and interest expense, the Malaysian operations recorded earnings before interest, tax, depreciation and amortisation (Ebitda) of RM186.3mil which was 131% higher than RM80.6mil in the preceding year.

It explained that the higher Ebitda in the current year was mainly due to a higher average CPO price of RM4,706 per tonne compared with RM2,829 a tonne in the preceding year, palm kernel price of RM3,441 per tonne (preceding year: RM1,834 per tonne) as well as higher FFB production by 1% or 4,008 tonnes.

In FY22, United Malacca posted a net profit of RM105.9mil, up from RM13.01mil a year earlier, while revenue surged to RM141.9mil from RM24.42mil last year.

“The group expects fresh fruit bunch (FFB) production to increase during FY23 due to higher yields and better age profile

“However, the management expects an increase in operating costs resulting from higher material and labour costs,” it said.

United Malacca cautioned that the significant labour shortage for Malaysian operations as a consequence of the restriction of foreign labour recruitment could lead to lower expected FFB production in 1Q23.

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United Malacca , CPO , palm oil


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