24/05/2016 (Bernama) - Genting Plantations Bhd posted a 42 per cent drop in pre-tax profit to RM38.49 million for the first quarter ended March 31, 2016 from RM66.55 million in the same period last year.

Revenue fell 20 per cent to RM260.87 million from RM324.40 million previously.

In a filing to Bursa Malaysia, the company said the lower financial results were due to the decline in contribution from the plantation and property segments, which outweighed the improvements in its plantation and downstream manufacturing segments in Indonesia.

It said the plantation segment was affected by the lower production of fresh fruit bunches which fell by 11 per cent year-on-year, due to lagged effects of the adverse weather condition experienced over the past two years.

For the property segment, it said the decline was due to lower land sales whereby there was a recognition of a one-off gain from land sales in the previous year.

Moving forward, the direction of palm oil prices will continue to have a significant influence on the group's overall performance, while crop yields may continue to be generally constrained by the lagged effects of adverse weather and the addition of newly mature areas.

The group said notwithstanding the price and production prospects, its focus remained centred on the ongoing pursuit of operational improvements including yield and cost management.

On property segment, in cognizant that the Malaysian property market will continue tracking the country's underlying economic conditions, the company said it would ensure that new property offerings were well timed and fully aligned with market requirements.