PETALING JAYA: Johor Plantations Group Bhd
expects crude palm oil (CPO) prices to be supported at RM4,000 per tonne heading into 2026, underpinned by the incoming monsoon rainfall, Indonesia increasing its biodiesel blend from B40 to B50 and festive buying in the first quarter 2026 from Eid & Chinese New Year.
Nonetheless, Johor Plantations said while the price outlook appears favourable, industry players should remain wary of slower global demand and geopolitical tensions, which may introduce volatility.
For the third quarter ended Sept 30, 2025 (3Q25), the group’s net profit rose by 38% year-on-year (y-o-y) to RM106mil or earning per share of 4.24 sen, supported by improved market demand and cost management.
Revenue for the quarter under review was up by 23% y-o-y to RM496.2mil, mainly due to increase in revenue from the sale of the group's CPO and palm kernel (PK).
In a filing with Bursa Malaysia, the group said revenue from the sale of the group's CPO increased by 20.8% y-o-y to RM409.98mil for 3Q25, compared with RM339.46mil recorded in 3Q24 due to a higher CPO selling price and a higher volume of CPO delivered.
Further, revenue from the sale of the group's PK increased by 36% y-o-y to RM83.53mil for 3Q25, compared with RM61.42mil recorded in 3Q24, due to a higher PK selling price and a higher volume of PK delivered.
The group said performance for the quarter was primarily supported by stronger contribution from its upstream segment.
Johor Plantations said the upstream segment is mainly contributed by the identity preserved mills. Revenue from the upstream segment increased by 12.5% y-o-y to RM375.68mil for 3Q25, compared with RM333.88mil recorded in 3Q24.
For the nine month period ended Sept 30, 2025 (9M25), the group’s net profit increased by 45% y-o-y to RM257.2mil or earnings per share of 10.29 sen. Revenue was up by 17% y-o-y to RM1.2bil.
Managing director Mohd Faris Adli Shukery said stronger external crop contributions helped offset the slight dip in its 9M25 production compared with last year.
“With improving yields, firm demand, and continued optimisation across our operations, we remain confident of delivering a stronger 2025.
“Our third-quarter performance underscores Johor Plantations’ solid fundamentals and steady progress in delivering our long-term strategy. The improvement across key segments, alongside the on-track development of its integrated sustainable palm oil complex in Sedili, reflects the strength of our integrated model and readiness for the next phase of sustainable growth,” he said in a statement yesterday.
Johor Plantations has declared a single-tier interim dividend of 1.75 sen per share in 3Q25, payable on Dec 23, 2025. The ex-date is on Dec 4, 2025.
