TSH Resources reports declining profit
The Star Online (24/05/2018) - PETALING JAYA: TSH Resources Bhd image: https://cdn.thestar.com.my/Themes/img/chart.png has reported a 39% fall in net profit to RM17.83mil for its first quarter ended March 31 compared to the corresponding quarter last year, due to lower crude palm oil (CPO) and palm kernel revenue.
According to a Bursa Malaysia filing yesterday, the plantation group registered a revenue of RM226.14mil for the quarter.
This was due to lower average selling prices of CPO and palm kernel.
The average CPO and palm kernel prices for the quarter declined to RM2,316 per tonne and RM2,043 per tonne, respectively, from RM2,985 per tonne and RM2,981 per tonne in the previous corresponding quarter.
On the other hand, fresh fruit bunch production for the quarter increased to 181,219 tonnes.
This compared with 148,813 tonnes in the year-ago corresponding quarter.
“The group expects its crop production for the current year to further improve vis-a-vis the previous year due to better age profile and more planted areas coming into maturity and harvesting.
“The board remains optimistic on the long-term prospects of the palm oil industry due to the higher per capita income, many health qualities of palm oil and population growth, which will drive greater demand.
“The palm products segment, which accounts for more than 85% of the revenue and profit of the group, will remain the core contributor of group profit,” said TSH Resources,.
The company added that the management would continue its focus on the improvement of productivity and efficiency to reduce the unit cost of production.