United Malacca 3Q net profit nearly doubles to RM30.24 mil on higher CPO price

KUALA LUMPUR (March 22): United Malacca Bhd’s net profit in the third quarter ended Jan 31, 2022 (3QFY22) almost doubled to RM30.24 million compared to RM13.73 million in the same period last year, on the back of higher crude palm oil prices (CPO).

Earnings per share surged to 14.42 sen, from 6.54 sen previously.

In a Bursa Malaysian filing on Tuesday (March 22), the group said its quarterly revenue rose 38.15% to RM147.79 million from RM106.98 million, underpinned by higher contribution from its Malaysia and Indonesia’s operation.

For the nine months period ended on Jan 31, the group’s net profit leapt more than threefold to RM87.18 million from RM24.71 million, while revenue expanded 39.35% to RM406.51 million against RM291.71 million previously.

On a quarterly basis, the group’s net profit declined 16.23% from RM36.10 million in the immediate preceding quarter (2QFY22), while revenue increased 2.74% from RM143.85 million in 2QFY22.

Moving forward, the group expects fresh fruit bunch (FFB) production to increase during the financial year ending April 30 2022 (FY22), due to higher yields and better age profile.

However, FFB production could be affected by prolonged wet weather, particularly in Sabah and Indonesia, it said.

“Significant labour shortage for Malaysian operations as a consequence of the restriction of foreign labour recruitment could lead to lower expected FFB production.

“The group expects to achieve better results in the current financial year due to significantly higher CPO prices.

“Meanwhile, management's priority remains focused on improving labour productivity, mechanisation initiatives and cost efficiency, as well as increasing FFB yield,” it shared.

Shares in United Malacca ended unchanged at RM5.50 on Tuesday, giving it a market capitalisation of RM1.15 billion.

Source: TheEdge - 23 Mar 2022