PETALING JAYA: IOI Corp Bhd
’s net profit more than quadrupled in the second quarter ended Dec 31, 2025 (2Q26) on stronger revenue and foreign exchange gains.
In a bourse filing, the plantation player announced a net profit of RM528.5mil in 2Q26, as compared to RM111.1mil in the previous corresponding quarter.
It is noteworthy that the second-quarter profit before tax (PBT) was recorded at RM650.2mil.
However, after excluding one-off items including a RM112mil net foreign currency translation gain on borrowings and deposits, the underlying PBT was reduced to RM538.4mil, some 7% higher than the RM504.6mil seen in 2Q25.
As for 2Q26 revenue, it increased by 1.5% year-on-year (y-o-y) to RM3.01bil, led by higher contribution from the resource-based manufacturing segment and marginally higher contribution from the plantation segment.
The plantation segment’s profit was down 3% y-o-y in 2Q26, but by excluding the fair value loss on biological assets and derivative financial instruments, the underlying profit was recorded 0.3% y-o-y higher at RM500.6mil.
The improvement was due mainly to higher fresh fruit bunch (FFB) production, partially offset by higher crude palm oil (CPO) stock level, lower CPO and palm kernel prices realised as well as higher cost of production.
In 2Q26, the average selling price of CPO declined by 5.5% y-o-y to RM4,224 per tonne, while palm kernel prices were rather flat at RM3,449 per tonne.
IOI Corp’s FFB output for 2Q26 was higher by 13.8% y-o-y at 874,000 per tonne.
Meanwhile, the resource-based manufacturing segment’s underlying profit for 2Q26 was 94% higher y-o-y due mainly to higher margin from refinery sub-segment as well as higher share of associates results.
With the improved second-quarter profitability, earnings per share rose to 8.46 sen. A 5.5 sen dividend was declared for the quarter.
Cumulatively, for the first half of financial year 2026, IOI Corp’s net profit increased by 9.3% y-o-y to RM897.9mil, while revenue rose 7.5% to RM6.06bil.
Looking ahead, IOI Corp expects CPO prices to remain supported above RM4,000 per tonne over the next three months, even though near-term volatility may persist.
The group noted that the upside potential for CPO prices may be constrained by a stronger ringgit, the postponement of Indonesia’s B50 biodiesel mandate, and relatively high Malaysian palm oil inventory levels.
“For our plantation segment, FFB production is projected to trend higher, driven by a larger proportion of oil palms reaching prime age, despite the ongoing accelerated replanting in Sabah.
“We remain positive on the outlook of the plantation segment and expect it to deliver resilient financial performance in FY26.”
IOI Corp also cautioned that the outlook for the refinery and commodity marketing sub-segment continues to be challenging.
Sales margins are expected to remain under pressure due to elevated inventory levels and intense competition from Indonesian producers.
“While festive-driven demand may help mitigate the near-term headwinds, our expertise in producing low-contaminant oils, together with ongoing operational efficiency initiatives, will be key to sustaining acceptable financial performance.”
