Ta Ann earnings drop 36% in 3Q on lower CPO, FFB prices
28/11/2023 (The Edge Malaysia), Kuala Lumpur - Ta Ann Holdings Bhd’s net profit fell 36% to RM65.14 million in the third quarter ended Sept 30, 2023 (3QFY2023), from RM101.5 million a year ago, on lower palm oil and plywood product prices. The group also recognised a gain of RM4.9 million from changes in the fair value of biological assets.
In a filing to Bursa Malaysia, Ta Ann said the average selling prices for crude palm oil (CPO), fresh fruit bunches (FFB) and plywood products were lower by 18%, 6%, and 25%, respectively, compared with the same quarter last year.
Earnings per share dropped to 14.79 sen from 23.04 sen.
Quarterly revenue declined 18% to RM489.19 million from RM594.89 million a year earlier.
Ta Ann declared a second interim dividend of 15 sen per share, payable on Jan 22 next year, bringing the total dividend as of Sept 30 to 25 sen per share.
For the nine months ended Sept 30, the group’s net profit declined 50% to RM147.39 million, from RM298.13 million in the same period last year, while revenue fell to RM1.23 billion from RM1.74 billion.
During the cumulative period, the average selling prices for CPO, FFB and plywood products fell by 32%, 32% and 18%, respectively.
The group had recognised a gain from changes in the fair value of biological assets amounting to RM16.3 million during the nine-month period, as compared with a gain of RM13.43 million in the preceding corresponding period.
Ta Ann's shares closed one sen or 0.3% lower at RM3.51 on Tuesday, valuing the group at RM1.56 billion.