20/05/2016 (Bernama) - Ta Ann Holdings Bhd is optimistic it will remain on track to achieve a 15 to 20 per cent growth in fresh fruit bunch (FFB)production volume for its oil palm division this year.

This is in spite of the challenging global economic outlook with slower growth rates in most emerging economies and subdued demand for commodities accross the board, Executive Chairman Datuk Amar Abdul Hamid Sapawi said in an annual report at the group's annual general meeting here Thursday.

The production volume growth rate is driven by larger mature area and improved palm age profile, he said.

Abdul Hamid said the group's FFB output was up 12 per cent to 633,143 metric tonnes last year compared to 562,000 metric tonnes in 2014, while crude palm oil (CPO) production grew by 12 per cent from 152,695 metric tonnes in 2014 to 171,482 metric tonnes in 2015.

Abdul Hamid expressed optimism that the outlook for CPO prices, which averaged RM2,200 per metric tonnes last year, "should be bright in the coming year".

For its timber division, he said the group hopes the Trans-Pacific Partnership Agreement (TPPA) would create new market opportunities especially in the North American market, which could boost the industry's export volume.

With adjustments made in the supply chain to cater to the expected slowdown in demand, the timber division would see some volatility in prices, he noted.

He said the group's revenue for the financial year ended Dec 31, 2015 was RM1,048.3 million, up four per cent compared to the previous year, while net profit after tax of RM191.5 million was 53 per cent higher than in 2014, translating to earnings per share of 51 sen.

Dividend paid was 20 sen per share, which translates to a yield of 3.98 per cent based on year-end closing price, with the dividend payout ratio at 40 per cent, he added.