22/06/2017 (The Star Online) - KUALA LUMPUR: United Malacca Bhd posted a strong 42% growth in earnings in the financial year ended April 30, 2017 (FY17), despite incurring a foreign exchange loss of RM15.28mil on a US dollar loan.

The oil palm plantation group’s earnings rose to RM84.55mil on 34% higher revenue of RM274.71mil, it said in its quarterly financial report to Bursa Malaysia.

“The higher profit was mainly due to higher average prices of crude palm oil and palm kernel by 28% and 67% respectively as well as higher fresh fruit bunches (FFB) production by 8%,” the 107-year-old company said.

Both its Malaysian and Indonesian operations performed better. Plantation profit from the Malaysian operations increased 81% to RM85.64mil.

Plantation profit in Indonesia, where it made its maiden investment in FY16 by acquiring an 83.0% effective equity interest in PT Lifere Agro Kapuas for US$66.4mil (RM284.8mil), shot up 252% to RM4.24mil against RM1.20mil in the preceding year due to higher FFB production and higher FFB selling price. (The acquisition more than doubled the group’s plantation land bank.)

For the fourth quarter, United Malacca enjoyed a 43% jump in earnings to RM29mil as revenue grew 47% to RM70.28mil.

The company’s directors proposed a second interim dividend of 12 sen for FY17 plus a special dividend of 3 sen, boosting its total annual dividend to 23 sen (FY16: 16 sen).