KUALA LUMPUR (June 28): United Malacca Bhd saw its net profit drop 63.58% to RM7.65 million for the fourth quarter ended April 30, 2023 (4QFY2023), from RM21.1 million a year earlier, dragged down by lower crude palm oil (CPO) and palm kernel (PK) prices.

Earnings per share decreased to 3.65 sen from 10.02 sen in 4QFY2022, the group's filing with Bursa Malaysia showed.

Quarterly revenue fell 8.24% to RM135.3 million from RM147.45 million.

United Malacca declared a second interim dividend of seven sen per share, to be paid on Aug 18. This brings the total dividend for FY2023 to 12 sen per share, compared with 15 sen in FY2022.

The group said its Malaysia operations’ plantation profit slumped 93% to RM3 million for 4QFY2023, from RM42.6 million a year ago. Ebitda dropped 72% to RM14.3 million from RM51.4 million.

“The lower Ebitda was due to lower CPO price of RM3,999 a tonne (from RM6,034) and PK price of RM2,035/tonne (from RM4,526/tonne) as and higher unit cost of production from the increase in material and labour costs,” the group added.

Meanwhile, losses in its Indonesian plantations widened to RM2.5 million from RM1.3 million, while Ebitda fell 27% to RM3.8 million as the average CPO price dropped to RM3,492 per tonne (from RM4,015) and PK price tumbled to RM1,698 a tonne (from RM3,520/tonne).

For the full year, United Malacca’s net profit dropped 44.19% to RM60.38 million, from RM108.2 million in FY2022, although revenue increased by 9.12% to RM604.5 million from RM553.96 million.

United Malacca said it expects fresh fruit bunches production to increase in FY2024, driven by higher yields and better age profile.

“Management's priority remains focused on improving labour productivity, mechanisation initiatives and cost efficiency as well as increasing oil yield,” it added.

Shares of United Malacca finished unchanged at RM5.20 on Wednesday (June 28), valuing the group at RM1.09 billion.