KUALA LUMPUR: Johor Plantations Group Bhd
(JPG) had an encouraging first quarter of the year (1QFY25) with improved earnings and revenue over the year-ago quarter.
However, the group said it remains cautiously optimistic about its operational plans and continued to practise production discipline given the elevated stock levels of crude palm oil (CPO) and gradual recovery in demand.
"While crude palm oil prices may continue to face near-term pressure amid broader global uncertainties, the group maintains a prudent outlook and is strategically positioned to capture value as market fundamentals strengthen in the quarters ahead," said managing director Mohd Faris Adli Shukery in a statement.
In 1QFY25, JPG recorded a net profit of RM75.93mil, up from RM49.97mil in the year-ago quarter, which translated to an earnings per share of 3.04 sen compared to 2.45 sen previously.
Revenue during the quarter under review was RM340.43mil, up from RM294.91mil in the previous comparative quarter.
The board of directors declared an interim dividend of one sen per share, payable on June 24, 2025.
Given the group's continued confidence in the year's outlook, it is maintaining a minimum annual dividend payout of 50% of profit after tax and minority interest (Patami).
During the quarter, CPO delivery declined 10.7% to 56,203 metric tonnes (MT) while palm kernel dipped 4.6%, in line with industry trends.
According to the group, the group delivered strong results, driven by a 22.2% increase in the average realised CPO selling prices, a 65.2% increase in PK selling price and higher selling price premium recorded during the quarter.
The group’s average CPO selling price stood at RM4,969/MT, reflecting a premium of RM236/MT over the Malaysia Palm Oil Board (MPOB) average price.
PK also commanded a premium, with an average price of RM3,898/MT, RM269/MT above the MPOB reference price.
