Innoprise Plantations declares 7 sen dividend as 2Q profit jumps 50%

KUALA LUMPUR (Aug 24): Innoprise Plantations Bhd’s net profit for the second quarter ended June 30, 2022 (2QFY22) jumped 50.11% to RM30.94 million from RM20.61 million in the same quarter last year, as it enjoyed higher selling prices for its crude palm oil (CPO) and palm kernel (PK).

Revenue climbed 44.08% to RM78.73 million from RM54.64 million in 2QFY21, with the average selling price for CPO having risen 54%, while PK's rose 48%, its bourse filing showed. Earnings per share improved to 6.46 sen from 4.3 sen.

The group declared a second interim dividend of 7 sen per share, to be paid on Sept 29. This raised its year-to-date payout for FY22 to 13 sen, as opposed to 10 sen in the corresponding year-ago period.

For the six months ended June 30, the group’s net profit more than doubled to RM60.47 million from RM29.62 million, as cumulative revenue jumped 60.58% to RM153.19 million from RM95.39 million, as it sold more CPO and PK at higher prices.

The group is expecting 2022 to be an excellent year for the plantation sector, as the CPO price is expected to remain at a “comfortable” level. The group's fresh fruit bunch production for the second half of the year is expected to increase due to seasonal trend, better yield and maturity age profile.

“Given the current levels of CPO and PK prices, the board is confident of achieving reasonably good profit in the coming quarter. Management will continue to focus on productivity and efficiency improvement to reduce unit cost of production,” it said.

Innoprise Plantations' share price finished one sen or 0.69% higher at RM1.45 on Wednesday (Aug 24), giving the group a market capitalisation of RM694.34 million. Year to date, the counter has risen 15.08%.