MARKET DEVELOPMENT
Subur Tiasa Sees RM216.27 Million Revenue in First Quarter of FY15
Subur Tiasa Sees RM216.27 Million Revenue in First Quarter of FY15
24/12/2014 (Borneo Post) - Subur Tiasa Holdings Bhd (Subur Tiasa) registered better turnover for first quarter of financial year 2015 (1QFY15).
The company in a filing to Bursa Malaysia yesterday said its revenue for 1QFY15 inched up marginally by 0.85 per cent year-on-year (y-o-y) to RM216.27 million from RM214.44 million in 1QFY14.
However, the company said its net profit for 1QFY15 dropped 38 per cent y-o-y to RM5.69 million against RM9.14 million recorded in 1QFY14.
In its notes accompanying the release of these results, Subur Tiasa said its timber manufacturing division registered lower profit attributed to lower export sales volume of particleboard by 14 per cent and decrease in average export selling price of sawn timber by eight per cent.
For 1QFY15, its oil palm plantation segment recorded a loss before tax of RM0.41 million compared to profit before tax of RM2.9 million in the preceding year corresponding quarter.
The loss, it said, was a result from a decrease of four per cent in fresh fruit bunch (FFB) average selling price despite the 20 per cent increase in harvested volume of FFB.
Going forward, Subur Tiasa said the group has fine tuned operational efficiency by embarking on various initiatives including upgrading of estate infrastructure and mechanization program especially on the infield FFB evacuation which shall contribute to the segment’s performance in quarters to come.
Its timber segment is expected to contribute positively with firm demand for logs and timber products despite the challenge on rising operational cost.
“Timber and timber products prices are expected to sustain in view of prevailing tight log supply in the market following the imposition of log export ban by Myanmar in April and the upcoming monsoon season.
“The recent increase in Malaysia’s biodiesel mandate from five per cent to seven per cent and the current low palm oil output season will stabilize the recent recovery in crude palm oil (CPO) prices.
“The segment’s contribution would largely be dependent on CPO price which is also correlated to the movement of world edible oil and related markets,” it said.
“The group will continue to focus on consolidating and improving the existing business segments in order to deliver sustainable profitability and value creation.”
The company in a filing to Bursa Malaysia yesterday said its revenue for 1QFY15 inched up marginally by 0.85 per cent year-on-year (y-o-y) to RM216.27 million from RM214.44 million in 1QFY14.
However, the company said its net profit for 1QFY15 dropped 38 per cent y-o-y to RM5.69 million against RM9.14 million recorded in 1QFY14.
In its notes accompanying the release of these results, Subur Tiasa said its timber manufacturing division registered lower profit attributed to lower export sales volume of particleboard by 14 per cent and decrease in average export selling price of sawn timber by eight per cent.
For 1QFY15, its oil palm plantation segment recorded a loss before tax of RM0.41 million compared to profit before tax of RM2.9 million in the preceding year corresponding quarter.
The loss, it said, was a result from a decrease of four per cent in fresh fruit bunch (FFB) average selling price despite the 20 per cent increase in harvested volume of FFB.
Going forward, Subur Tiasa said the group has fine tuned operational efficiency by embarking on various initiatives including upgrading of estate infrastructure and mechanization program especially on the infield FFB evacuation which shall contribute to the segment’s performance in quarters to come.
Its timber segment is expected to contribute positively with firm demand for logs and timber products despite the challenge on rising operational cost.
“Timber and timber products prices are expected to sustain in view of prevailing tight log supply in the market following the imposition of log export ban by Myanmar in April and the upcoming monsoon season.
“The recent increase in Malaysia’s biodiesel mandate from five per cent to seven per cent and the current low palm oil output season will stabilize the recent recovery in crude palm oil (CPO) prices.
“The segment’s contribution would largely be dependent on CPO price which is also correlated to the movement of world edible oil and related markets,” it said.
“The group will continue to focus on consolidating and improving the existing business segments in order to deliver sustainable profitability and value creation.”