Genting Plantations 1Q net profit up 10.4%


KUALA LUMPUR: Genting Plantations Bhd’s prospects for the rest of the year will track the performance of its mainstay plantation segment.

This segment's success hinges primarily on the fluctuations in palm product prices and the group’s fresh fruit bunch (FFB) production.

“In the short term, the group expects palm oil prices to remain supported at current levels due to favourable price spread against other edible oils. However, the anticipated cyclical uptrend in palm oil production may exert downward pressure on prices,” Genting Plantations said in a statement.

The group expects an overall growth in FFB production over the remaining months of the year, underpinned by additional harvesting areas and progression of existing mature areas into higher yielding brackets in Indonesia.

Nevertheless, it said the ongoing replanting activities in Malaysia may have a moderating effect on the group’s production growth.

In the first quarter ended March 31 (1Q24), Genting Plantations’ net profit rose 10.4% to RM42.8mil compared with RM38.8mil a year ago, translating into earnings per share of 4.77 sen against 4.33 sen last year.

Revenue increased by 3.7% to RM605.8mil versus RM584.2mil a year prior.

Genting Plantations said FFB production in 1Q24 was comparable year-on-year despite ongoing replanting activities at the Malaysian estates. Production improved at the group’s Indonesian estates, which benefited from its favourable age profile and expanded harvesting area.

The group achieved marginally higher crude palm oil (CPO) and palm kernel prices of RM3,643 per tonne and RM2,011 a tonne respectively.

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Genting Plantations , FFB , palm oil , CPO

   

Next In Business News

Oil posts weekly gain on solid 2024 demand outlook
PPB Group buys Techbond stake
Prabowo aims to raise Indonesia debt-to-GDP ratio toward 50%
Laundry Care ventures into linen rental business
Oriental Kopi files for Bursa IPO
BHIC wins RM1bil govt job
MI Technovation prepares for chip recovery
Local furniture export outlook hinges on US housing market
Luxury labels slash prices to attract wary shoppers
Delay in rate cuts but bonds rally

Others Also Read