MARKET DEVELOPMENT
FY13 A Mixed Year for TDM Due to Challenges on Plantation Front
FY13 A Mixed Year for TDM Due to Challenges on Plantation Front
14/05/2014 (Borneo Post) - Financial year 2013 (FY13) was a year of mixed results for coglomerate TDM Bhd (TDM) as it weathers the challenges of unfavourable market conditions on the crude palm oil front to post lower profitability.
The group in its Annual Report 2013 released on Monday highlighted the weak performance of its plantations business was offset by the robust performance of its healthcare business which continued to deliver sustainable growth.
“Despite the year’s difficult operating environment, I am pleased to say that TDM’s market capitalisation strengthened and we are in a position to continue delivering good value to our shareholders,” said its chairman Tan Sri Wan Abu Bakar Wan Omar in the report.
Abu Bakar affirmed TDM made some good strides forward on the healthcare front which offset the weakness seen in plantations.
Right from the onset of 2013, TDM and other plantation sector players had to contend with challenging market conditions for crude palm oil (CPO). Planters were hit by lower selling prices, higher costs and lower fresh fruit bunch (FFB) yields.
Nevertheless, the group continued to mitigate and offset the impact of these external circumstances by leveraging on analytical thinking and predictive actions to remain resilient.
“Our palm oil business continues to expand as we advance forward to plant some 5,000 hectares annually at our substantial land bank in Kalimantan while replanting is taking place at our planted areas in Terengganu.”
To recap, in November 2013, TDM became the first plantation company in Terengganu to achieve Roundtable on Sustainable Palm Oil (RSPO) certification for our mills and estates.
“With our two 100 per cent RSPO certified mills now producing approximately 124,266 metric tonnes of certified sustainable palm oil (CSPO) a year, we are imagining that our products will fetch a higher price,” Abu Bakar added.
“We will continue to make progress as we move forward reflecting on our record breaking performance and track record of continuous growth.
“Our Healthcare Division delivered sustained growth.
“We leveraged on our unique brand of patient-focused, no-frills secondary care medical services for the community to make some strong advances forward and provide the group with a stable and sizeable revenue stream,” the chairman said.
Abu Bakar said plans were in the offing to double TDM’s hospital bed capacity within three years while revenue and profit before tax (PBT) are set to grow.
The group’s earnings per share (EPS) fell to 3.18 sen from 8.33 sen in FY2012 representing a 62 per cent drop year on year.
Meanwhile, net assets per share decreased by 17 sen.
“In comparison with the eight years of sustained growth prior to FY2012, these last two years have been especially challenging due to a number of external factors beyond our control.
“Nonetheless, the performance of TDM’s plantation business remains broadly in line with that of the industry in 2013 and our board is confident that our current strategic direction, on-going drive for greater operational efficiency and enduring emphasis on corporate social responsibility, will drive us forward.”
The group in its Annual Report 2013 released on Monday highlighted the weak performance of its plantations business was offset by the robust performance of its healthcare business which continued to deliver sustainable growth.
“Despite the year’s difficult operating environment, I am pleased to say that TDM’s market capitalisation strengthened and we are in a position to continue delivering good value to our shareholders,” said its chairman Tan Sri Wan Abu Bakar Wan Omar in the report.
Abu Bakar affirmed TDM made some good strides forward on the healthcare front which offset the weakness seen in plantations.
Right from the onset of 2013, TDM and other plantation sector players had to contend with challenging market conditions for crude palm oil (CPO). Planters were hit by lower selling prices, higher costs and lower fresh fruit bunch (FFB) yields.
Nevertheless, the group continued to mitigate and offset the impact of these external circumstances by leveraging on analytical thinking and predictive actions to remain resilient.
“Our palm oil business continues to expand as we advance forward to plant some 5,000 hectares annually at our substantial land bank in Kalimantan while replanting is taking place at our planted areas in Terengganu.”
To recap, in November 2013, TDM became the first plantation company in Terengganu to achieve Roundtable on Sustainable Palm Oil (RSPO) certification for our mills and estates.
“With our two 100 per cent RSPO certified mills now producing approximately 124,266 metric tonnes of certified sustainable palm oil (CSPO) a year, we are imagining that our products will fetch a higher price,” Abu Bakar added.
“We will continue to make progress as we move forward reflecting on our record breaking performance and track record of continuous growth.
“Our Healthcare Division delivered sustained growth.
“We leveraged on our unique brand of patient-focused, no-frills secondary care medical services for the community to make some strong advances forward and provide the group with a stable and sizeable revenue stream,” the chairman said.
Abu Bakar said plans were in the offing to double TDM’s hospital bed capacity within three years while revenue and profit before tax (PBT) are set to grow.
The group’s earnings per share (EPS) fell to 3.18 sen from 8.33 sen in FY2012 representing a 62 per cent drop year on year.
Meanwhile, net assets per share decreased by 17 sen.
“In comparison with the eight years of sustained growth prior to FY2012, these last two years have been especially challenging due to a number of external factors beyond our control.
“Nonetheless, the performance of TDM’s plantation business remains broadly in line with that of the industry in 2013 and our board is confident that our current strategic direction, on-going drive for greater operational efficiency and enduring emphasis on corporate social responsibility, will drive us forward.”