KUALA LUMPUR (Nov 30): BLD Plantation Bhd’s net profit for its second quarter ended Sept 30, 2023 (2QFY2024) grew 131% to RM 7.1 million or 7.59 sen per share, against RM3.07 million or 3.29 sen per share a year ago (2QFY2023), on the back of higher sales volumes and favourable changes in fair value of biological assets.

Quarterly revenue increased 1.62% to RM590.35 million in 2QFY2024, from RM580.92 million the year before, the group reported in a filing with Bursa Malaysia on Thursday.  

For the first half ended on Sept 30, 2023 (1HFY2024), net profit slipped by more than half to RM7.77 million from RM15.92 million in the same period last year, following revenue having declined 23.65% to RM975.18 million from RM1.28 billion, which BLD said were principally due to lower average selling price for its product.

On its outlook, BLD Plantation said its operations remain cautious on the current weakening performance of the palm oil market, relative to the record-high crude palm oil prices marked in the first half of 2022, underpinned by slower production, continuing geopolitical tensions and subdued demand for energy and food that decrease in palm oil exports.  

“While the industry enters into its seasonal peak production in the second half of the year, crude palm oil (CPO) prices may experience a marginal softening trend, in anticipation of higher availability of other major oils and the easing of Indonesian palm oil exports in the recent months. 

“On the weather front, ongoing concerns of the El-Nino phenomenon could potentially heighten the CPO market volatility, with the expectation of yield cut, given that the weather trend prevails until the early months of 2024,” BLD Plantation said. 

Despite this, the group said it remains committed to enhancing its operational efficiencies and optimising production processes, to mitigate the impact of inflationary pressure on costs by maintaining a prudent approach to cost management and focusing on minimising its exposure to potential risks that could affect its performance.

At noon break on Thursday, BLD Plantation finished at RM11, valuing the group at RM1.03 billion.