MARKET DEVELOPMENT
TSH Profits Rise to RM181 Million
TSH Profits Rise to RM181 Million
26/02/2015 (Daily Express) - Sabah-based TSH Resources Berhad profit before tax (PBT) increased to RM180.7 million for the financial year ended 31 December 2014, which was 25 per cent higher than the PBT in the previous financial year of RM144.4 million. The PBT was derived after adjusting for non-cash and unrealised exchange translation and one-off disposal of investment.
TSH produced 18 per cent more fresh fruit brunches (FFB) in 2014 than the year before despite adverse weather impact in a few parts of Indonesia. FFB production growth was the key driver for the higher PBT.
"Our FFB production upsurge in 2014 came from an overall improvement in yield of our oil palm plantations. Our fully matured plantations are able to achieve an average yield of 30 metric ton per hectare (mt/ha). Our remaining 75 per cent of plantation trees which are still immature and young matured will improve in yield per ha and propel a double digit FFB production growth for the next few years", said TSH's Chairman, Datuk Kelvin Tan.
In line with the decrease in production cost realised by TSH through better operational and cost efficiency, gross profit margin of TSH increased to 35 per cent this year from 30 per cent recorded in the previous year.
TSH's management and staff, under the stewardship of Kelvin Tan, are closely guided by the principle of 'High Yield and Low Cost', working hard constantly to improve FFB yield and adopt stringent cost-controls in order to remain competitive in palm oil industry. He further explained, "We have been conscious of the cost pressure in this industry. Hence, it is important for us put extra emphasis on yield improvement and cost-controls, especially during this period of subdued crude palm oil (CPO) price.
Our unit production cost is expected to be undergoing downtrend as we drive our cost efficiency and the FFB yield increases over time."
TSH has announced a proposed first and final single tier dividend of 2.5 sen per ordinary shares for the financial year ended 31 December 2014.
TSH produced 18 per cent more fresh fruit brunches (FFB) in 2014 than the year before despite adverse weather impact in a few parts of Indonesia. FFB production growth was the key driver for the higher PBT.
"Our FFB production upsurge in 2014 came from an overall improvement in yield of our oil palm plantations. Our fully matured plantations are able to achieve an average yield of 30 metric ton per hectare (mt/ha). Our remaining 75 per cent of plantation trees which are still immature and young matured will improve in yield per ha and propel a double digit FFB production growth for the next few years", said TSH's Chairman, Datuk Kelvin Tan.
In line with the decrease in production cost realised by TSH through better operational and cost efficiency, gross profit margin of TSH increased to 35 per cent this year from 30 per cent recorded in the previous year.
TSH's management and staff, under the stewardship of Kelvin Tan, are closely guided by the principle of 'High Yield and Low Cost', working hard constantly to improve FFB yield and adopt stringent cost-controls in order to remain competitive in palm oil industry. He further explained, "We have been conscious of the cost pressure in this industry. Hence, it is important for us put extra emphasis on yield improvement and cost-controls, especially during this period of subdued crude palm oil (CPO) price.
Our unit production cost is expected to be undergoing downtrend as we drive our cost efficiency and the FFB yield increases over time."
TSH has announced a proposed first and final single tier dividend of 2.5 sen per ordinary shares for the financial year ended 31 December 2014.