KUALA LUMPUR (May 15): Johor Plantations Group Bhd’s (KL:JPG) net profit for the first quarter dropped 33.68% year-on-year to RM50.35 million — its lowest since listing two years ago — dragged by lower average selling prices of crude palm oil (CPO) and palm kernel (PK).

The group, which went public in July 2024, posted a net profit of RM75.93 million in the same quarter a year earlier. 

Earnings per share stood at 2.01 sen in the first quarter ended March 31, 2026 (1QFY2026), versus 3.04 sen in 1QFY2025, a bourse filing showed on Friday.

Quarterly revenue, however, rose 4.78% to RM356.7 million in 1QFY2026, from RM340.42 million, mainly driven by higher CPO and PK sales.

The board declared a first interim dividend of one sen per share for FY2026, payable on June 12.

In a statement, the group said the weaker earnings in 1QFY2026 reflect a normalisation in commodity prices from the exceptionally elevated levels recorded in the corresponding quarter last year.

Despite the softer pricing environment, Johor Plantations said it continued to command a price premium over Malaysian Palm Oil Board (MPOB) benchmark averages, with average CPO and PK selling prices of RM4,260 per MT and RM3,529 per MT respectively, exceeding MPOB averages of RM4,152 per MT and RM3,396 per MT respectively.  

In an environment of rising energy and logistics costs, the group is largely insulated from near-term cost pressures, having secured both pricing and supply for its 2026 fertiliser requirements through proactive procurement strategy, said managing director Mohd Faris Adli Shukery.

Looking ahead, the group said it remains focused on operational excellence, accelerated replanting and continued expansion of its certified supplier network to strengthen long-term productivity.  

Meanwhile, the first phase of its integrated sustainable palm oil complex in Johor remains on track for commissioning within the year, supporting the group’s downstream expansion and integrated value chain strategy, it added.

At Friday’s noon market break, Johor Plantations’ share price was one sen or 0.58% lower at RM1.70, giving it a market captalisation of RM4.25 billion.