Innoprise Plantation's 1Q net profit soars 228% on higher ASPs, sales volume; pays six sen dividend

KUALA LUMPUR (May 23): Innoprise Plantations Bhd’s net profit for the first quarter ended March 31, 2022 (1QFY22) soared 228% to RM29.53 million from RM9.01 million in 1QFY21, thanks to higher average selling prices (ASPs) of crude palm oil (CPO) and palm kernel (PK).

The Sabah-based plantation company's quarterly revenue rose 82.7% to RM74.46 million, from RM40.75 million. Earnings per share rose to 6.17 sen from 1.88 sen a year earlier, its bourse filing showed.

Innoprise Plantations declared a first interim dividend of six sen per share, payable on June 23, 2022.

Besides stronger average selling prices of CPOs, which grew 53%, and PK, which jumped 84%, the group said it saw higher sales volume of both products arising from higher fresh fruit bunch (FFB) production.

On prospects, the group said FFB production in the coming quarter is expected to increase due to seasonal trends.

“Year 2022 will still be an excellent year for the plantation sector as the CPO price is expected to remain high compared with 2021. Given the current level of CPO and PK prices, the board is confident of achieving reasonably good profit in the coming quarter," it said.

"Management will continue to focus on productivity and efficiency improvement to reduce unit cost of production,” it added.

On Monday (May 23), Innoprise Plantations' shares ended at RM1.82, up two sen or 1.11% for a market capitalisation of RM871.52 million. The stock has jumped 44.44% year-to-date from when it was trading at RM1.26.