KUALA LUMPUR: Teck Guan Perdana Bhd
expects its palm-related businesses to remain supported by resilient downstream demand, although lower crop production and weather-related risks could weigh on harvesting activities and crop availability in the near term.
The group said oil palm crop production is expected to be lower than in the corresponding period last year, with potential El Niño effects and recent haze conditions in Southeast Asia posing further risks to harvesting and crop availability.
“Notwithstanding the near-term crop constraints, the Board remains cautiously optimistic on the long-term prospects of its palm-based businesses,” it said in the notes accompanying its financial results.
It said biodiesel and renewable fuel programmes, particularly Indonesia’s palm-based biodiesel programme and expanding renewable fuel requirements in the United States, are also expected to support global vegetable oil demand.
“Despite geopolitical developments, inflationary pressures and raw material costs may continue to affect profit margins, the group will continue to strengthen operational efficiency, production yields and its strategic initiatives to achieve sustainable long-term growth,” it said.
For the second quarter ended July 31, 2026, Teck Guan Perdana’s net profit jumped 205% to RM16.04mil from RM5.26mil a year earlier.
Revenue surged 179% to RM260.81mil from RM93.44mil, mainly due to higher sales volume and selling prices, while earnings per share increased to 40.01 sen from 13.11 sen.
For the cumulative period, revenue rose 24% to RM278.73mil from RM224.76mil, while net profit eased 1% to RM16.48mil from RM16.64mil.
