KUALA LUMPUR (Feb 26): United Plantations Bhd (UP) has declared a final dividend of 70 sen per share, along with a special dividend of 40 sen per share, for the financial year ended Dec 31, 2023 (FY2023), as annual net profit jumped to a new record high of RM711 million.

Both dividends will be paid on May 14, with April 26 as the ex-date and April 29 as the entitlement date, the Perak-based planter said in a bourse filing on Monday.

UP in November last year declared an 80 sen dividend for FY2023, comprising an interim payout of 40 sen per share and an extraordinary dividend of 40 sen per share.

This brings total dividends for FY2023 to a record high of RM1.90 per share, up 36% from the RM1.40 paid for FY2022.

According to the annual report, which was also released on Monday, the group's FY2023 record high net profit was 17% higher than the RM606 million it made in FY2022, and the increase was mainly due to higher commodity prices and the group's efforts in optimising yields, with a "commendable performance recorded for the downstream segment".

Earnings per share rose to RM1.71 sen from RM1.45 sen. The stronger profitability was achieved despite cumulative revenue dropping 19.92% to RM2.014 billion from RM2.515 billion.

The group has not been releasing its fourth-quarter results separately since FY2015, but announces the full-year results in its annual report instead.

"As of Dec 31, 2023, the group’s cash and cash equivalents stood at RM634 million, compared with RM779 million in FY2022. The reduction was mainly a result of the extraordinary dividend of 40 sen per share paid in December 2023.

"Nevertheless, the group continues to maintain a conservative capital structure to have the flexibility to utilise internally generated funds for capital investments within the group, sustain a stable dividend to shareholders, and to have the capability to pursue new investments," said the group's chairman Datuk Mohamad Nasir Ab Latif in the annual report.

He also said the record high dividend UP announced for FY2023 was based on the group's exceptional results, and a "very strong cash position that has been accumulated over the past years and should not be taken for granted, especially when market conditions change due to, among others, commodity price volatility".

Trading of UP shares was halted for an hour from 9am to 10am on Monday, following the dividend and annual report announcements.

After trading resumed, UP shares closed 12 sen or 0.58% higher at RM20.92, giving the group a market capitalisation of RM8.71 billion. The counter has risen 17.13% since the start of 2024, and gained 30.75% over the past one year.

Source: TheEdge - 27 Feb 2024