KUALA LUMPUR (April 25): Sarawak Oil Palms Bhd's (KL:SOP) first quarter net profit jumped 43.17% year-on-year on improved fresh fruit bunches (FFB) production and higher selling prices of palm oil products.

Its net profit soared to RM113.76 million for the first quarter ended March 31, 2025 (1QFY2025), from RM79.46 million in 1QFY2024, with revenue rising 8.79% to RM1.44 billion from RM1.33 billion, its bourse filing on Friday showed. Earnings per share rose to 12.73 sen from 8.92 sen.

The plantation group declared a final dividend of four sen per share for FY2024, amounting to RM35.75 million, to be paid on July 18, raising its FY2024 dividend payout to 15 sen. The group previously paid annual dividends of 10 sen per share for FY2021 to FY2023.

Compared to its immediate preceding quarter of 4QFY2024, however, the group's net profit dropped 18.63% from RM139.81 million, with revenue dipping about 2% from RM1.47 billion, mainly due to lower FFB production and lower prices of palm oil products — down to RM4,688 per tonne from RM4,995 per tonne — though prices of palm kernel products rose to RM4,105 per tonne from RM3,599 per tonne.

The company said its future performance will continue to be influenced by cyclical FFB production, global edible oil price movements, and the impact of supply chain dynamics on fertiliser, chemical and fuel prices, all of which will affect production costs.

"The group is taking effective steps to improve its production through better efficient management, including cost control and replanting programmes. Notwithstanding this, industry will continue to face challenges in view of global economic conditions and volatile commodity prices," it cautioned.

On Friday, Sarawak Oil Palms' share price closed three sen or 1.0% higher at RM2.98, giving the company a market valuation of RM2.66 billion. Year-to-date, the counter has retreated nearly 6%.