KUALA LUMPUR (June 26): United Malacca Bhd (KL:UMCCA) reported a largely flat quarterly net profit on Friday as increased revenue from its Malaysian and Indonesian operations was offset by impairment charges and a higher effective tax rate.

The net profit for the fourth quarter ended April 30, 2026 (4QFY2026) was RM23.17 million, compared to RM23.23 million a year earlier, while revenue rose 9.8% to RM200.44 million from RM182.53 million, according to the plantation group's Bursa Malaysia filing.

The group recognised RM5.59 million in impairment charges on bearer plants and intangible assets, versus none in 4QFY2025. Tax expense rose to RM9.41 million from RM5.29 million, as the effective tax rate exceeded the statutory rate due to certain non-deductible expenses.

Fresh fruit bunch (FFB) production eased 1% to 109,092 tonnes from 110,680 tonnes a year earlier.

United Malacca declared a final dividend of 13 sen per share, unchanged from 4QFY2025, bringing total dividends for the year to 20 sen per share, up from 18 sen in FY2025.

The group's Malaysian operations saw a 29% decline in profit before tax to RM19 million from RM26.8 million, weighed by lower average crude palm oil (CPO) and palm kernel prices, a 4% decline in FFB production and higher unit production costs. Average CPO prices fell to RM4,266 per tonne from RM4,563 a year earlier, while palm kernel slipped to RM3,587 per tonne from RM3,620.

In contrast, the Indonesian operations delivered a 70% jump in profit before tax to RM18.6 million from RM10.9 million, supported by a 6% increase in FFB production and stronger oil mill performance, which more than offset lower average CPO prices.

Meanwhile, the group's investment holding segment recorded a net foreign exchange loss of RM1.7 million, an improvement from RM9.1 million in the year-ago quarter.

For the full financial year, United Malacca's net profit surged 50% to RM144.68 million from RM96.44 million in FY2025, while revenue climbed 14.4% to RM813.42 million from RM711.24 million.

Looking ahead, the group expects FFB production to remain stable in FY2027, supported by a more favourable plantation age profile and continued operational improvements.

Shares of United Malacca closed unchanged at RM5.90 on Friday, giving the group a market capitalisation of RM1.24 billion. The stock has gained 14.8% over the past 12 months.