United Malacca's quarterly net profit jumps 78% on higher oil palm prices, declares 7 sen dividend
27/06/2024 (The Edge Malaysia), Kuala Lumpur - United Malacca Bhd (KL:UMCCA) on Thursday reported a 77.81% rise in quarterly net profit to RM15.3 million from RM8.6 million a year earlier, driven by stronger revenue contributions from its main business segments which offset losses from its investment activities.
The plantation group's earnings per share rose to 7.29 sen for its fourth quarter ended April 30, 2024 (4QFY2024) from 4.1 sen previously, according to its bourse filing.
Revenue increased 26.75% to RM171.49 million from RM135.3 million in 4QFY2023.
United Malacca declared a second interim dividend of 7 sen per share, payable on Aug 9.
The group said its Malaysian operations achieved a plantation profit of RM25.5 million, up by more than eight times from RM3 million in 4QFY2023. This growth was fueled by higher average crude palm oil and palm kernel prices, along with higher fresh fruit bunch production at a lower unit cost.
In Indonesia, United Malacca recorded a plantation profit of RM5.7 million compared to the RM2.5 million loss in 4QFY2023.
United Malacca’s investment income, however, saw a loss of RM6.9 million due to a net foreign exchange loss of RM6.7 million and interest expenses of RM1.2 million. This compares to a net foreign exchange gain of RM11.1 million, interest income of RM500,000, and fair value gains on short-term funds of RM400,000, net of interest expenses of RM1 million in 4QFY2023.
For FY2024 as a whole, United Malacca’s net profit declined 17.39% to RM50.66 million from RM61.33 million in the previous year. Full-year revenue decreased 1.47% to RM595.64 million from RM604.48 million.
Looking ahead, United Malacca anticipates increased FFB production in FY2025 due to an improved age profile and enhanced operational efficiency.
“Management's priority remains focused on improving labour productivity, mechanisation initiatives and cost efficiency as well as increasing oil yield,” it said.
United Malacca’s shares closed one sen or 0.2% higher at RM5.05 on Thursday, giving it a market capitalisation of RM1.06 billion.
Edited ByS Kanagaraju