KUALA LUMPUR (Feb 17): Johor Plantations Group Bhd (KL:JPG) posted a 27.84% rise in net profit for the fourth quarter, lifted by stronger average selling prices.

Net profit for the three months ended Dec 31, 2024 (4QFY2024) rose to RM80.51 million from RM62.97 million in the same period a year earlier, as revenue increased 18.52% to RM464.93 million versus RM392.27 million, according to the oil palm planter’s bourse filing on Monday.

The group’s average crude palm oil (CPO) selling price was up 25.6% year-on-year (y-o-y), while CPO delivery volume was down 8.9%. Average palm kernel (PK) selling price increased 59.8% y-o-y, while PK delivery volume was down 9%.

Johor Plantations declared an interim dividend of 2.75 sen per share for the quarter, payable on March 25. This brought the group's dividend payout for FY2024 to 5.25 sen, equal to what was declared in FY2023.

Johor Plantations closed FY2024 with a 53.8% rise in net profit to RM257.32 million from RM167.31 million in FY2023, as revenue increased 21.7% to RM1.52 billion versus RM1.25 billion.

On a full-year basis, the group’s average CPO selling price was up 8.6% y-o-y with a 10.2% improvement in delivery volume. As for PK, average selling price rose 29.3% while delivery volume increased 6.6%.    

Looking forward, Johor Plantations said CPO prices in the near term may be influenced by supply and demand dynamics of palm oil in the region, biodiesel mandates, and geopolitical situations impacting oils and fats prices.

The group also noted that future palm oil production is expected to be influenced by factors such as weather conditions and labour availability in the region.

“The group remains committed to producing high-quality sustainable products. It will continue to drive operational efficiency by improving yield, oil extraction rates and plant efficiency, while accelerating its mechanisation and digitalisation efforts,” Johor Plantations said.

“Barring any unforeseen circumstances, the group expects performance for 2025 to be satisfactory” it added.

Shares in Johor Plantations ended three sen or 2.44% lower at RM1.20, valuing the group at RM3 billion.