KUALA LUMPUR: Amid rising energy and logistics costs, Johor Plantations Group Bhd
's utilisation of a proactive procurement strategy means the group remains largely insulated from near-term cost pressures, said managing director Mohd Faris Adli Shukery.
According to the Mohd Faris, the group has secured both pricing and supply for its 2026 fertiliser requirements, and enters the remainder of the year with sustained operational momentum and a clear strategic pipeline.
"Phase 1 of the Integrated Sustainable Palm Oil Complex (iSPOC) remains on track for commissioning within the year, supporting the group’s downstream expansion and integrated value chain strategy.
"In parallel, the group remains focused on operational excellence, accelerated replanting and continued expansion of certified supplier network to strengthen long-term productivity," he said in the group's results announcement.
In the first quarter ended March 31, 2026, Johor Plantation recorded a net profit of RM50.35mil, down from RM75.93mil in the year-ago quarter as commodity prices normalised from the exceptionally elevated levels in the same quarter in 2025.
However, the group's quarterly revenue improved to RM356.7mil from RM340.43mil in the previous comparative quarter, underpinned by resilient operational execution and sustained pricing outperformance over industry benchmarks.
According to the group, it continued to command a price premium over Malaysian Palm Oil Board (MPOB) benchmark averages, despite the softer pricing environment, with average curde palm oil and palm kernel selling prices of RM4,260 per MT and RM3,529 per MT respectively, exceeding MPOB averages of RM4,152 per MT and RM3,396 per MT respectively.
"The group delivered a solid operational performance during the quarter, driven by higher CPO and PK delivery volumes, increased external crop intake, sustained mill throughput and improved extraction performance, a creditable outturn given the seasonal low crop cycle," said Mohd Faris.
The board declared a first interim dividend of one sen per share, with entitlement date on June 3, 2026, and payable on June 12, 2026.
