Johor Plantations' 2Q net profit jumps threefold on higher sales of CPO and palm kernel
20/08/2024 (New Straits Times), Kuala Lumpur - Johor Plantations Group Bhd's (JPG) net profit jumped nearly threefold to RM49.74 million in the second quarter ended June 30, 2024 (2Q24) from RM12.65 million a year ago, from higher revenue selling crude palm oil (CPO) and palm kernel (PK).
Revenue for the quarter rose 34.9 per cent to RM360.91 million from RM267.61 million previously, the group said in a filing with Bursa Malaysia Securities today. As a result, JPG registered a higher earnings per share of 2.44 sen compared to 0.70 sen in 2Q23.
For the first half of FY24, the group posted a higher net profit of RM99.71 million from RM36.05 million a year ago, while revenue increased to RM655.82 million from RM519.59 million.JPG has declared an interim dividend of 1.25 sen per share for the quarter, which is payable on Sept 24, 2024.
Commenting on the financial performance, managing director Mohd Faris Adli Shuker said increased CPO volume and sustained selling prices were key drivers of our improved profitability this quarter.
He added that these positive results align with the group's vision of becoming the globally preferred producer of premium sustainable and traceable oils and fats.
"To ensure continued success, we remain focused on enhancing operational efficiency, yield improvement, advancing our mechanisation efforts, and enforcing stringent cost controls."
"These efforts will position us to capitalise on any potential market opportunities," he said in a statement.
Mohd Faris also said the group is poised to strengthen its position as a leading force in the integrated oil palm sector, and it is confident that these efforts will solidify its standings and drive ongoing growth for the months to come.
He said that sustainability will remain integral to the group's operations due to increasing preference for responsibly-sourced palm oil.
"Furthermore, our accelerated digitalisation and mechanisation initiatives align seamlessly with our broader transformation towards future-proofing and resilience," he said. On prospects, JPG said it remains committed to producing high-quality sustainable products.
The group will also continue to drive operational efficiency, particularly in improving yield, oil extraction rate and plant efficiency, while accelerating its mechanisation and digitalisation efforts. Barring any unforeseen circumstances, the group expects the performance for the financial year to be satisfactory.