KUALA LUMPUR (Dec 18): United Malacca Bhd’s net profit in the second quarter ended Oct 31, 2023 (2QFY2024) fell by 12.64% to RM13.72 million from RM15.71 million in the previous year, mainly due to higher expenses and investment losses.

Notably, the planter saw an investment loss contributed by net foreign exchange loss of RM2.83 million during the quarter.

Earnings per share fell by 6.54 sen from 7.49 sen, its Bursa Malaysia filing showed on Monday.

Quarterly revenue, however, climbed by 3.13% to RM144.51 million against RM140.13 million in the previous year on the back of higher revenue contribution from its Malaysian and Indonesian operations.

Meanwhile, the group also declared its first interim dividend of five sen per share, to be paid on Jan 31, 2024.

For the first half period ended Oct 31 (1HFY2024), the plantation group’s net profit dropped by 59% to RM16.40 million from RM40.01 million recorded in the same period last year.

Revenue, on the other hand, fell 9% to RM280.46 million from RM307.57 million.

On a quarterly basis, the group’s net profit came in higher from RM2.68 million registered in the immediate preceding quarter (1QFY2024) while revenue rose by 6.29% from RM135.95 million in 1QFY2024.

Moving forward, the group expects fresh fruit bunches production to increase in the financial year ending April 30, 2024 (FY2024) due to better age profile and expected improvement in Indonesian operations.

“Management's priority remains focused on improving labour productivity, mechanisation initiatives and cost efficiency as well as increasing oil yield.

“Assuming crude palm oil (CPO) prices remain at the current level, the group expects satisfactory results for FY2024,” it said.

Shares in United Malacca settled four sen or 0.8% lower to RM4.93, giving it a market capitalisation of RM1.03 billion.

Year to date, the stock has fallen by 8.7%.