Boustead Plantations 2Q profit up 51% on stronger palm oil prices, cautions about high costs in 2H
23/08/2022 (The Edge Markets), Kuala Lumpur - Boustead Plantations Bhd's net profit grew 51% to RM73.22 million or 3.27 sen per share for the second quarter ended June 30, 2022 (2QFY22) from RM48.37 million or 2.16 sen per share a year ago thanks to higher palm oil prices.
The group declared a second interim dividend of 2.75 sen per share, with an ex-date of Sept 12.
Revenue for the quarter under review rose 44% to RM348.96 million for 2QFY22 from RM242.78 million last year, Boustead Plantations said in a stock exchange filing.
For the first half of this year (1HFY22), net profit jumped over eight times to RM508.38 million from just RM60.6 million in the previous corresponding period, on the back of 62% growth in revenue to RM673.11 million from RM414.72 million.
In 2HFY22, Boustead Plantations said palm oil prices are expected to sustain as the ongoing Ukraine-Russia conflict is likely to limit the supply of edible oils and poor weather conditions in Europe and America will contribute to further crop losses.
Nonetheless, the group expects production costs to be higher in 2HFY22 due to impact of minimum wages and increase in fertiliser and diesel prices.
“Despite the challenges, the group is positive on the outcome from the ongoing effort to manage cost efficiently through prudent spending and the crop improvement initiatives,” it said.
Shares of Boustead Plantations closed half sen or 0.6% lower at 79.5 sen per share, giving it a market capitalisation of RM1.78 billion.