KUALA LUMPUR (March 26): Plantation outfit United Malacca Bhd’s (KL:UMCCA) net profit for its third quarter rose 53% year-on-year, mainly attributed to higher crude palm oil (CPO) and palm kernel prices.

The net profit for the three months ended Jan 31, 2025 (3QFY2025), was RM29 million compared to RM18.97 million a year earlier. Earnings per share increased to 13.82 sen from 9.04 sen, according to the company's bourse filing on Wednesday.

Revenue for the quarter climbed 26.23% to RM181.38 million from RM143.69 million in 3QFY2024, offsetting the lower fresh fruit bunch (FFB) production in Malaysia due to lower yields.

The company did not declare any dividend for the current quarter.

United Malacca said the CPO price increased 33% year-on-year to RM4,921 per tonne during the quarter, while the palm kernel price surged 85% to RM3,736 per tonne.

Despite lower fresh fruit bunches (FFB) production, the company's Malaysian operations recorded a 32% increase in profit to RM30.4 million from RM23 million last year.

Indonesian operations in Kalimantan, on the other hand, posted a five-fold jump in profit to RM17.4 million from RM3.5 million a year earlier, on the back of a 30% rise in FFB production coupled with higher CPO and palm kernel prices.

United Malacca said the stronger performance helped offset a RM6.27 million foreign exchange loss from a weaker rupiah.

For the first nine months of FY2025, net profit more than doubled to RM73.21 million from RM35.37 million a year ago, while revenue increased 24.66% to RM528.71 million from RM424.15 million.

United Malacca remains optimistic for the remaining part of the year, expecting a comparable FFB production to the previous year, while focusing on cost efficiencies, mechanisation, and labour productivity.

“Assuming CPO prices remain at current levels, the group expects better results for FY2025 compared to FY2024,” it said.

United Malacca’s shares closed up nine sen or 1.76% at RM5.19, valuing the company at RM1.09 billion.