IJM Plantations returns to the black, recording RM101.04 mln net profit on higher CPO prices

KUALA LUMPUR, Nov 19 -- IJM Plantations Bhd returned to the black for its second quarter financial year ended Sept 30, 2021, recording a net profit of RM101.04 million from a net loss of RM1.04 million.

Its revenue jumped 41.8 per cent to RM299.78 million from RM211.37 million reported in the same quarter a year ago, thanks the higher commodity prices during the quarter.

“Revenue of the Indonesian operations improved due to the higher commodity price despite lower sales volume. The fresh fruit bunches (FFB) production remained at the same level as that achieved in the previous quarter.

“Overall, a better financial performance was achieved as a result of the higher commodity prices,” the company said in a filing with Bursa Malaysia.

In addition, the company also benefited from the strengthening of the rupiah against the US dollar and Japanese yen, which resulted in net foreign exchange gains of RM7.74 million being recorded on the foreign currency-denominated borrowings.

This compared to a net foreign exchange loss of RM34.97 million in the second quarter financial year 2021.

IJM Plantations reported basic earnings per share of 11.47 sen from basic earnings loss per share of 0.12 sen.

The group is optimistic of a favourable financial performance for the current financial year based on market expectation that the palm product prices would remain elevated.

However, this is barring any volatility of the foreign exchange rates, particularly that of the rupiah against the US dollar and Japanese yen, and any adverse weather impact disrupting crop production.

The directors do not recommend any interim dividend for the current quarter and financial period.

-- BERNAMA