KUALA LUMPUR (Sept 24): United Malacca Bhd posted a net profit of RM3.55 million for the first quarter ended July 31, 2020 (1QFY21), compared with a RM60.75 million net loss for 4QFY20.

This, the group explained in a filing today, was because of an impairment loss of bearer plants totalling RM56.8 million in 4QFY20.

Revenue inched up 1% to RM86.79 million, from RM86.19 million in the immediate preceding quarter.

However, on a year-on-year basis, the net profit represented a 90.38% drop from RM36.95 million reported for 1QFY20. This was despite revenue doubling from RM43.3 million.

The group expects its oil palm production to increase in FY21 due to higher yields, better age profile and an increase in mature area in oil palm estates in Kalimantan, Indonesia.

The management's priority, it said, remains focused on improving labour productivity and cost efficiency as well as increasing oil palm yields.

The rising trend of crude palm oil prices, coupled with higher production, is expected to improve the group's financial results.

However, the group said it is cautious in view of the uncertainty over the world economy due to the Covid-19 pandemic.

United Malacca said that as of 1QFY21, its fresh fruit bunch (FFB) yield was 4.08 tonnes per hectare on a group level, from 3.52 tonnes per hectare seen in 1QFY20.

Total FFB production rose 13% to 97,641 tonnes, from 86,448 tonnes in the previous corresponding quarter.

Shares in United Malacca finished nine sen or 1.88% lower at RM4.70, valuing the group at RM985.9 million. Some 23,000 million shares were traded.