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Quarterly Report For The Financial Period Ended 30 September 2017

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INTERIM REPORT FOR THE 3RD QUARTER ENDED 30 SEPTEMBER 2017

Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income

(The figures have not been audited)
Condensed Consolidated Statement of Comprehensive Income

Condensed Consolidated Statement of Financial Position

(The figures have not been audited)
Condensed Consolidated Statement of Financial Position

Review of Performance

Quarter 3, 2017 vs Quarter 3, 2016

The Group recorded revenue of RM106.5 million in the current quarter ended 30 September 2017 compared with RM120.6 million reported in the corresponding period of the preceding year. The decrease was principally due to the effect of lower realised average selling price of PK, lower sales volumes of CPO and PK, partially offsetted by higher realised average selling price of CPO during the current quarter.

The Group recorded a profit before tax of RM8.2 million for the current quarter as compared to a profit before tax of RM14 million for the corresponding period of the preceding year. The decrease was principally due to the effect of lower revenue during the current quarter.

In addition, there was a reversal of prior year's impairment loss on deposits paid for acquisition of equity interest in four plantation companies recognised as other non - operating income in the corresponding period of the preceding year.

The performance of the respective major business segments of the Group are as follows:

Oil Palm Operations

For the current quarter, the oil palm operations segment contributed 99.7% of the Group revenue of RM106.5 million.

The revenue of the oil palm operations decreased by RM14.1 million to RM106.2 million in the current quarter compared with RM120.3 million reported in the corresponding period of the preceding year. The decrease was principally due to the effect of lower realised average selling price of PK, lower sales volume of CPO and PK, partially offsetted by higher realised average selling price of CPO during the current quarter.

The average selling price of CPO had increased approximately by 3.4% whereas the average selling price of PK had decreased approximately by 13%. The sales volume of CPO and PK had decreased by approximately 11.1% and 12.9% respectively for the current quarter.

The gross profit and profit before tax for the oil palm operations decreased by RM2.8 million and RM6.2 million respectively for the current quarter as compared to the corresponding period of the preceding year. The decrease was in line with the decrease in revenue during the current quarter.

Nine months ended 30 September 2017 vs Nine months ended 30 September 2016

The Group recorded revenue of RM299.1 million in the current financial period ended 30 September 2017 compared with RM273 million reported in the corresponding period of the preceding year. The increase was principally due to the effect of higher realised average selling prices of CPO and PK, partially offsetted by lower sales volumes of CPO and PK during the current financial period.

The Group recorded a profit before tax of RM35.5 million for the current financial period as compared to profit before tax of RM17.2 million for the corresponding period of the preceding year. The increase was principally in line with the increase in revenue during the current financial period.

Included in other non - operating income in the corresponding period of the preceding year was a reversal of prior year's impairment loss on deposits paid for acquisition of equity interest in four plantation companies.

The performance of the respective major business segments of the Group are as follows:

Oil Palm Operations

For the current financial period, the oil palm operations segment contributed 99.8% of the Group revenue of RM299.1 million.

The revenue of the oil palm operations increased by RM26.2 million to RM298.3 million in the current financial period compared with RM272.1 million reported in the corresponding period of the preceding year. The increase was principally attributed to the effect of higher realised average selling prices of CPO and PK, partially offsetted by lower sales volumes of CPO and PK during the current financial period.

The average selling prices of CPO and PK had increased approximately by 12.1% and 3% whereas the sales volume of CPO and PK had decreased by approximately 0.2% and 2.3% respectively for the current financial period.

The gross profit and profit before tax for the oil palm operations increased by RM21.9 million and RM17.3 million respectively for the current financial period as compared to the corresponding period of the preceding year. The increase was in line with the increase in revenue during the current financial period.

Other segments

Other segments' results for the current quarter and current financial period are insignificant to the Group.

Prospects for the Current Financial Year

The performance of the Group is largely dependent on the production, operation efficiency and prices of CPO and PK.

The Group will continue in its efforts to improve its performance and use its best endeavour to achieve satisfactory results for the current financial year.