KUALA LUMPUR (Jan 29): Chin Teck Plantations Bhd’s net profit declined 15.69% to RM21.33 million for the first quarter ended Nov 30, 2023, from RM25.3 million a year earlier, dragged down by weaker earnings from its associate company and joint ventures (JVs).

This was despite a largely flat revenue of RM63.19 million, compared with RM62.96 million previously, on the back of increased sales volume of fresh fruit bunches, crude palm oil (CPO) and palm kernel, offset by lower selling prices.

The oil palm planter’s earnings were hit by lower share of results of a property development associate and JVs of RM14,000 versus RM3.46 million in the same quarter a year ago. The palm oil plantation JVs in Indonesia incurred a loss.

Commenting on its prospects for the remainder of the financial year ending Aug 31, 2024 (FY2024), Chin Teck said the current trend in the average selling prices of CPO is expected to remain.

The group nevertheless expects satisfactory plantation results for FY2024.

Shares in Chin Teck closed nine sen or 1.19% lower at RM7.45, valuing the group at RM680.66 million.