PETALING JAYA: Johor Plantations Group Bhd
(JPG) is expecting the palm oil market to remain supported by seasonal restocking demand, Indonesia's B50 biodiesel mandate and the seasonal peak crop cycle going into the rest of 2026.
The group said it will continue to monitor external developments going forward, including the anticipated El Niño event, evolving geopolitical tensions in the Middle East and the implementation of the European Union Deforestation Regulation (EUDR).
Releasing its results for the second quarter (2Q26) ended June for the fiscal year ending December (FY26) today, JPG saw net profit slip 32% year-on-year (y-o-y) to RM51.1mil, despite revenue inching up 4.4% to RM415.8mil.
The pattern was similar for its performance six months up till June 30, where bottom line was softer by 32.8% y-o-y to RM101.5mil, although turnover grew by 4.6% to RM772.5mil.
JPG, in a filing to Bursa Malaysia, said the weaker profitability was mainly attributable to lower average crude palm oil (CPO) and palm kernel (PK) selling prices, coupled with higher cost of sales, particularly from increased manuring, fresh fruit bunches (FFB) purchases, harvesting and transportation, repair and maintenance, as well as other operating costs from January to June.
“These were partially offset by higher CPO and PK delivery volumes, which increased by 9.4% and 2.0%, respectively,” it said, before adding that the quarterly and half-year top line was helped by higher sales volume of its CPO.
While crop production remains influenced by biological and seasonal factors, JPG managing director Mohd Faris Adli Shukery said the group will continue to strengthen the foundations of the business through disciplined estate management, accelerated replanting, expansion of its external crop ecosystem and the ongoing development of Integrated Sustainable Palm Oil Complex (iSPOC).
“These initiatives reinforce our integrated value chain strategy and position JPG for sustainable long-term value creation,” he commented.
Compared with the preceding quarter ended March 31, net profit improved marginally from RM50.4mil, while revenue rose 16.6% from RM356.7mil.
Higher CPO and PK sales had helped turnover, which translated to the stable net profit.
JPG declared a dividend of 1.1 sen per share for 2Q26, bringing total dividends declared for FY26 to 2.1 sen per share.
Barring any unforeseen circumstances, the group said it remains cautiously optimistic of delivering a satisfactory performance for FY26.
