KUALA LUMPUR: TH Plantations Bhd (THP) registered a net profit of RM5.78 million for the second quarter ended June 30, 2026 (2Q 2026) compared with RM11.78 million in 2Q 2025.
Revenue stood at RM220.80 million against RM226.58 million in the corresponding quarter last year, mainly due to lower sales volumes of crude palm oil (CPO) and palm kernel, despite higher average realised selling prices during the quarter.
For the first six months of 2026 (1H 2026), THP delivered a net profit of RM17.41 million compared to RM24.63 million previously, while revenue increased marginally to RM410.28 million from RM409.96 million a year ago.
Chief executive officer Datuk Borhan Bachi in a statement said the group remains focused on strengthening operational fundamentals while maintaining disciplined cost and capital management.
"Our first-half performance demonstrates that operational discipline continues to translate into measurable improvements across our estates and mills. The improvements in fresh fruit bunch production, oil extraction rate and kernel extraction rate provide a stronger operational foundation for the group.
"At the same time, our first biogas power plant has been operating well, demonstrating the value of our sustainability initiatives while contributing positively to the group’s broader Environmental, Social, and Governance (ESG) agenda," he said.
Borhan said while commodity prices remain subject to market volatility, the group’s focus is on the areas within its control, namely improving yields, optimising resource utilisation and maintaining cost discipline.
"We will continue to build on these operational improvements to strengthen the resilience and sustainability of our earnings," he added.
Moving forward, THP expects production to improve in the second half of the year, supported by continued improvements in harvesting efficiency, productivity and mill performance.
"Higher agricultural input and fuel costs arising from the ongoing West Asia conflict may place some temporary pressure on production costs. However, these cost pressures are expected to ease if the conflict is not prolonged.
"Accordingly, the group remains cautiously optimistic about its earnings prospects for the remainder of 2026," it said. - Bernama
