PETALING JAYA: Johor Plantations Group Bhd
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.
Releasing its results for the second quarter (2Q26) ended June for the fiscal year ending December yesterday, Johor Plantations saw net profit slip 32% year-on-year (y-o-y) to RM51.1mil, despite revenue actually 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.
Johor Plantations, in a filing with 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 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.
