High production costs likely to affect United Malacca earnings

Kenanga Research expects range-bound CPO prices for FY24 and FY25.

PETALING JAYA: United Malacca Bhd’s latest results for the first quarter of financial year 2024 (1Q24) are below expectations, say analysts.

The plantation group’s net profit fell 89% to RM2.68mil in 1Q24 from RM24.3mil a year earlier, dragged down by higher production costs and softer crude palm oil (CPO) prices.