25/08/2025 (The Edge Malaysia), Kuala Lumpur - TH Plantations Bhd’s (KL:THPLANT) net profit for the second quarter ended June 30, 2025 (2QFY2025) rose 13.25% year-on-year (y-o-y), as improved prices and sales volumes of crude palm oil (CPO) and palm kernel (PK) lifted its earnings.

Net profit for the quarter came in at RM11.79 million, compared with RM10.41 million in 2QFY2024, its bourse filing on Monday showed.

Earnings per share rose to 0.83 sen from 0.67 sen a year earlier.

In the exchange filing, TH Plantations said its quarterly revenue increased 11.1% to RM220.02 million from RM198.03 million, driven by higher average realised prices for CPO, PK and fresh fruit bunches (FFB), as well as sales volumes of CPO and PK.

All revenue during the quarter came from the group’s oil palm segment, while its forestry business remained in the red.

Gross margin remained flat at 26.05% while operating margin slipped slightly to 18.19% from 18.63%. Operating expenses expanded 24.79% to RM18.86 million, while finance costs eased 5.15% to RM12.26 million.

No dividend was declared for the quarter under review.

For the first half ended June 30, 2025 (1HFY2025), net profit rose 5.1% y-o-y to RM24.63 million while revenue improved 12.3% to RM399.14 million.

Cumulative earnings per share for the six-month period stood at 1.78 sen versus 1.64 sen in the same period last year.

Operating margin fell to 19.52% from 21.02% while gross margin was steady at 26.10%. Finance costs declined 5.89% to RM24.75 million for the half-year period.

TH Plantations said it remains cautiously optimistic for the second half, as peak production may pressure prices, but output moderation in Malaysia and sustained biodiesel demand in Indonesia and the US could provide support.

The plantation arm of Lembaga Tabung Haji said it will continue to focus on mechanisation, replanting and local recruitment, especially in Sarawak, to improve productivity and mitigate labour shortages.

Shares in TH Plantations closed up one sen or 1.82% to 56 sen on Monday, valuing the group at RM495 million. The stock has fallen over 17% year to date.

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