CEO Morning Brief

United Malacca's 4Q Profit Drops 38% Quarter-on-quarter to RM18.8 Mil, Declares 10 Sen Dividend

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Publish date: Wed, 29 Jun 2022, 08:53 AM
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TheEdge CEO Morning Brief
United Malacca's 4Q profit drops 38% quarter-on-quarter to RM18.8 mil, declares 10 sen dividend

KUALA LUMPUR (June 28): United Malacca Bhd recorded a net profit of RM18.72 million for its fourth quarter ended April 30, 2022 (4QFY22), compared with a net loss of RM11.7 million in the same period last year, thanks to higher crude palm oil (CPO) prices.

Revenue grew 38.64% to RM147.45 million from RM106.36 million, backed by the group's operations in Malaysia which recorded a plantation profit of RM42.7 million, up 180% from RM15.2 million previously. The group posted earnings per share of 8.92 sen, compared with the loss per share of 5.58 sen seen last year, its bourse filing on Tuesday showed.

"Higher earnings before interest, taxes, depreciation and amortisation (EBITDA) in the current quarter were mainly due to higher average CPO price of RM6,034 per tonne compared to RM3,454 per tonne in the preceding year.

"[This is in addition to] palm kernel price of RM4,526 per tonne from RM2,549 per tonne in the preceding year even though fresh fruit bunch (FFB) production declined by 3% or 2,091 tonnes," it said.

The group declared a second interim single-tier dividend of five sen per share as well as a special single-tier dividend of five sen per share, with both due on Aug 19, 2022.

However, compared with its immediate preceding quarter of 3QFY22, the group's net profit dropped 38.1% from RM30.24 million, as it recorded RM5.32 million of discounting value of plasma receivables and a RM12.34 million impairment of intangible assets, while revenue was little changed from the RM147.79 million it posted previously.

This is a further moderation from the RM36.1 million net profit it made in 2QFY22, when it made a revenue of RM143.85 million.

Nevertheless, United Malacca wrapped up its FY22 with a net profit of RM105.9 million, eight times more than the RM13.01 million it made in FY21, as revenue rose 39.16% to RM553.96 million from RM398.07 million.

On prospects, United Malacca expects FFB production to increase during the financial year ending April 30, 2023 (FY23) due to higher yields and better age profile.

However, it cautioned that FFB production in the first quarter of FY23 could be lower due to labour shortage in its Malaysian operations because of restrictions on foreign labour recruitment and higher operating costs from higher material and labour costs.

Shares in United Malacca ended nine sen or 1.67% higher at RM5.49 on Tuesday, giving it a market capitalisation of RM1.15 billion.

Source: TheEdge - 29 Jun 2022

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