KUALA LUMPUR: United Malacca Bhd's net profit slipped to RM60.38 million in the financial year ended April 30, 2023 (FY2023) from RM108.19 million in FY2022, dragged down by lower average crude palm oil (CPO) prices.
Revenue for the year, however, was higher at RM604.50 million from RM553.96 million, according to its filing with Bursa Malaysia today.
United Malacca said the Malaysian operations recorded 38 per cent lower plantation profit to RM91.3 million.
It said even though fresh fruit bunches (FFB) production was higher by 14 per cent or 44,619 tonnes, the average CPO price decreased to RM4,387 per tonne from preceding year's RM4,706 per tonne and palm kernel price declined to RM2,309 per tonne from RM3,441 per tonne previously.
Meanwhile, the Indonesian operations (Kalimantan) recorded a plantation loss of RM12.9 million compared with a plantation profit of RM7.3 million in the preceding year.
The operation FFB production was higher by 10 per cent or 5,672 tonnes but the average CPO price was lower at RM3,386 per tonne from RM3,613 per tonne last financial year and palm kernel price dropped to RM1,952 per tonne from RM2,504 per tonne.
Both operations also incurred higher unit cost of production from the increase in material and labour costs.
For the fourth quarter (4Q), net profit eased to RM7.65 million from RM21 million previously.
Revenue stood lower at RM135.30 million from RM147.45 million in 4Q FY2022.
FFB production for Malaysian operation eased by 23 per cent or 23,065 tonnes, while the Indonesian operation saw lower FFB production by 11 per cent or 2,237 tonnes.
The group expects FFB production to increase in the FY2024 due to higher yield and better age profile.
"Assuming CPO prices remain at the current level, the group expects satisfactory results for FY2024," it noted. - Bernama