PETALING JAYA: Johor Plantations Group Bhd
has registered a higher revenue of RM464.93mil for the fourth quarter ended Dec 31, 2024 (4Q24) compared to RM392.26mil for the same quarter a year ago.
In a filing with Bursa Malaysia, the integrated plantation group said its net profit was also higher at RM80.50mil for the quarter compared to RM62.97mil a year ago.
The increase for both was due to higher sales in crude palm oil (CPO) and palm kernels (PK).
The group noted its revenue from CPO increased 14.4% to RM386.88mil, and its PK sales surged 45.5% to RM73.69mil.
Its trading and services segment also recorded an increase of 34.2% on the back of higher sales of oil palm germinated seeds, agricultural machinery, equipment and spare parts.
For financial year 2024 (FY24), the group achieved a revenue of RM1.52bil, 21.7% higher than the RM1.25bil recorded in FY23. On the back of a higher revenue, the group recorded a net profit of RM257.32mil for the year, compared to RM167.30mil in FY23.
However, for the full year, its revenue for the trading and services segment decreased 15.1% because of lower volume of orders for mechanical buffalo units compared to orders in FY23.
Meanwhile, the group said it will remain committed to producing high-quality and sustainable products, while expecting its performance this year to be satisfactory.
“We will continue to drive operational efficiency by improving yield, oil extraction rates and plant efficiency, while accelerating our mechanisation and digitalisation efforts,” it said in a statement.
In Malaysia, palm oil production rose by 4.2% last year, driven by improved yields compared to the previous year.
CPO price in the fourth quarter last year traded between RM4,100 and RM5,300 and peaked during this quarter due to the annoying concerns of lower-than-expected production from the excessive rainfall in South-East Asia.
“As of December 2024, Malaysia’s closing stock was reported at 1.7 million tonnes, the lowest in the year attributable to stronger exports, particularly to India, Kenya and the European Union,” the group said.
However, despite the year-on-year increase, quarter-on-quarter CPO production in 4Q24 was lower due to seasonal crop fluctuation, as the peak production period had ended in 3Q24.
On top of that, heavy rainfall from the monsoon season towards the end of the year had contributed to low inventory levels.
“Future palm oil production is expected to be influenced by factors such as weather conditions and labour availability in the region.
“In the near term, CPO prices may be influenced by the supply and demand dynamics of palm oil in the region, biodiesel mandates, and geopolitical situations impacting oils and fats prices.”
The board has declared a third interim dividend of 2.75 sen per share for the quarter, rewarding its shareholders with a total dividend of 5.25 sen per share for the year.
At the market close, the group’s share price was RM1.20 with a market capitalisation of RM3bil.
