KUALA LUMPUR (Dec 20): Teck Guan Perdana Berhad's net profit for the third quarter ended Oct 31, 2023 (3QFY2024) slumped by 84% to RM3.64 million from RM22.54 million a year ago, primarily due to a decrease in operating margin.

Earnings per share also fell to 9.08 sen from 56.22 sen, according to the palm oil and cocoa products manufacturer's bourse filing on Wednesday.

Quarterly revenue decreased by 33% to RM91.25 million from RM136.24 million in the corresponding quarter of the previous year, mainly attributed to a decrease in selling prices.

The group did not declare any dividend for the quarter under review.

Compared with the immediate preceding quarter, Teck Guan's net profit jumped 40% from RM2.6 million in 2QFY2024, on the back of an increase in sales volume, while revenue also grew 72% from RM52.95 million.

For the nine-month period (9MFY2024), the group's net profit fell by 76% to RM8.34 million from RM34.78 million in 9MFY2023, as revenue also saw a decrease of 49% to RM212.94 million from RM417.24 million.

Regarding prospects, the group said that the current relentless palm products market continues to face a challenging environment, tempered by vulnerable fluctuating commodity prices and uncertainties in the global economy.

Despite such complex operating conditions, unpredictable weather phenomena, and the long-unresolved labour shortage are expected to further affect crop yield, eventually aggravating palm prices.

Nevertheless, the group is cautiously optimistic about the long-term prospects of the palm-based industry and continues to focus on enhancing productivity and optimizing operating cost efficiency to achieve sustainable growth.

Shares in Teck Guan settled unchanged at RM1.68 on Wednesday, giving the group a market capitalization of RM67.36 million.