Monday 22 Apr 2024
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KUALA LUMPUR (March 16): United Malacca Bhd's net profit rose 326.14% to RM13.73 million in the third quarter ended Jan 31, 2021 (3QFY21), from RM3.22 million a year earlier, on the back of higher production, higher selling prices and lower costs.

Earnings per share rose to 6.54 sen from 1.54 sen, the plantation group said in a filing.

Quarterly revenue rose 22.3% to RM106.98 million, from RM87.47 million, it added.

United Malacca said the average prices of crude palm oil (CPO) and palm kernel (PK) rose 19.43% and 46.5 year-on-year to RM3,092 and RM2,322 per tonne respectively during 3QFY21.

Meanwhile, fresh fruit bunch (FFB) production rose 6% to 3,791 tonnes, the group said.

For the nine-month period ended Jan 31, 2021 (9MFY21), net profit fell 67.93% to RM24.71 million, from RM77.06 million in 9MFY20, which included gain on disposal of RM103.2 million.

Excluding the one-off gain, its profit before tax of RM29.6 million in 9MFY21 was a swing from pre-tax loss of RM22.82 million in 9MFY20, largely because its Malaysian operations turned to profit, coupled with lower Indonesian losses and higher investment gain in the period.

Revenue for the nine-month period rose 40.38% to RM291.71 million, from RM207.8 million.

On prospects, United Malacca expects FFB production to increase in FY21 on higher yields, better age profile and an increase in mature area in its estates in Kalimantan.

"Management's priority remains focused on improving labour productivity and cost efficiency as well as increasing FFB yield.

"The rising trend of CPO prices coupled with higher FFB production are expected to improve the group's financial results. However, the group remains cautious in view of the uncertainty of CPO prices and shortage of labour," it said.

Shares of United Malacca rose eight sen or 1.59% to close at RM5.10, valuing the group at RM1.07 billion.

Edited ByS Kanagaraju
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