Innoprise pays 2.5 sen dividend despite 4Q net profit tumbling 71%

KUALA LUMPUR (Feb 21): Innoprise Plantations Bhd registered a 71.02% decline in its net profit for the fourth quarter ended Dec 31, 2022 (4QFY2022) to RM9.64 million from RM33.28 million a year prior, mainly due to lower average selling prices of crude palm oil (CPO) and palm kernel (PK).

The plantation firm’s revenue in the quarter declined 29.47% to RM56.42 million from RM79.99 million a year ago.

Despite the lower earnings recorded in 4QFY2022, the group declared a fourth interim dividend of 2.5 sen per share, payable on March 31.

For the full FY2022, Innoprise's net profit slipped 1.29% to RM85.09 million from RM86.2 million, although revenue grew 17.31% to RM270.22 million from RM230.34 million, driven by higher average selling prices of CPO, which increased 14%, and PK, which rose 10%.

Commenting on prospects, the group said palm oil prices are expected to stabilise in 2023 in anticipation of slightly higher palm oil production and weather conditions which are expected to improve in the second half of this year.

“Given the current level of CPO and PK prices, the board is confident of achieving reasonable profit in the coming quarter.

“Management will continue to remain focused on productivity and efficiency improvement to reduce unit cost of production,” it said in its filing with Bursa Malaysia.

Innoprise shares were down four sen or 2.52% to close at RM1.55, valuing it at RM742.23 million.