KUALA LUMPUR: United Malacca Bhd
expects fresh fruit bunches (FFB) production to increase during the financial year ending April 30, 2023 (FY23) due to higher yields and better palm age profile.
The plantation group, however, said its management expects an increase in operating costs resulting from higher material and labour costs.
“In addition, continuing acute labour shortage for Malaysian operations and high rainfall could lead to lower FFB production in the first half year of FY 2023.
“Meanwhile, management's priority remains focused on improving labour productivity, mechanisation initiatives, and cost efficiency as well as increasing FFB yield,” United Malacca said in the notes accompanying its financial results.
In the first quarter ended July 31, United Malacca posted a 16.6% jump in net profit to RM24.3mil from RM20.8mil in the same quarter last year.
Its revenue surged 45.7% to RM167.44mil against RM114.87mil a year prior. Earnings per share for the quarter stood at 11.59 sen against 9.94 sen last year.
