PETALING JAYA: Following the better-than-expected results in the second quarter ended Oct 31, 2024 of financial year 2025 (2Q25), United Malacca Bhd
expects its fresh fruit bunch (FFB) production to be higher in financial year 2025 (FY25) due to better age profile and improvement in operational efficiency.
This is supported by improved harvesting activities following the resolution of labour shortage issues and better weather conditions, said TA Research.
However, we believe the “crude palm oil (CPO) prices are likely to be affected by bumper soybean harvests in the United States and South America.
“The increase in supply in these regions, particularly soybean and other competing oils, is expected to put downward pressure on CPO prices,” it said in a report.
Excluding exceptional items, the plantation group’s core net profit surged by 72% year-on-year (y-o-y) to RM27.8mil, driven by a 26.9% increase in revenue.
The research firm said both Malaysian and Indonesian operations reported stronger profits in 2Q25 compared to the same period last year.
Cumulatively, the first-half of FY25’s (1H25) core net profit doubled to RM47.2mil, supported by a 23.8% increase in revenue.
This came on the back of higher palm oil prices and increased FFB production, particularly from Malaysia’s operations.
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