KUALA LUMPUR (Jan 20): Chin Teck Plantations Bhd (KL:CHINTEK) posted a 56.66% year-on-year rise in first-quarter net profit, lifted by higher prices and share of results of associates and joint ventures (JVs).
Net profit for the quarter ended Nov 30, 2024 (1QFY2025) rose to RM32.55 million, from RM21.33 million a year earlier, according to the oil palm planter in a bourse filing on Monday.
Revenue increased 15.77% to RM73.15 million, from RM63.19 million in the same period a year ago, on significant rises in average selling prices of fresh fruit bunches (FFB), crude palm oil (CPO) and palm kernel (PK), despite a decline in sales volumes.
Average selling prices of FFB stood at RM972 per tonne in 1QFY2025, versus RM767 in 1QFY2024, followed by CPO at RM4,306 per tonne against RM3,765, and PK at RM2,867 per tonne compared with RM2,061.
The group’s bottom line was also boosted by higher share of results of associates and JVs, which increased to RM5.15 million versus RM14,000 previously, due to oil palm JVs in Indonesia posting profits versus losses in 1QFY2024, and an increase in a property development associate’s profit contribution.
“Since previous financial years, the unrest in the surrounding villages located in the vicinity of the plantations in the Lampung province, Indonesia, has caused a disruption to routine harvesting of FFB,” Chin Teck said.
“The oil palm plantations have since commenced harvesting activities and mill operations,” it added.
Besides the 15 sen dividend declared in November last year, no other dividends have been declared for the quarter.
Looking ahead, Chin Teck said it expects the current trend in average selling prices of CPO to be sustained, and in turn expects satisfactory results for FY2025.
Shares in Chin Teck closed two sen or 0.25% higher at RM8.10 on Monday, valuing the group at RM740.04 million.