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Financials

Quarterly Report For The Financial Period Ended 31 December 2017

Financials Archive

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INTERIM REPORT FOR THE 4TH QUARTER ENDED 31 DECEMBER 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 4, 2017 vs Quarter 4, 2016

The Group recorded revenue of RM100.1 million in the current quarter ended 31 December 2017 compared with RM111 million reported in the corresponding period of the preceding year. The decrease was principally due to the effect of lower realised average selling prices of CPO and PK, lower sales volume of PK, partially offsetted by higher sales volume of CPO during the current quarter.

The Group recorded a loss before tax of RM37.0 million for the current quarter as compared to a profit before tax of RM8.5 million for the corresponding period of the preceding year. The decrease was principally due to the effect of lower revenue and impairment losses of RM43 million (included in other non-operating expenses) recognised during the current quarter.

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

Oil Palm Operations

For the current quarter, the oil palm operations segment contributed 99.7% of the Group revenue of RM100.1 million.

The revenue of the oil palm operations decreased by RM10.7 million to RM99.9 million in the current quarter compared with RM110.6 million reported in the corresponding period of the preceding year. The decrease was principally due to the effect of lower realised average selling prices of CPO and PK, lower sales volume of PK, partially offsetted by higher sales volume of CPO during the current quarter.

The average selling prices of CPO and PK had decreased approximately by 8.8% and 12% respectively for the current quarter. The sales volume of PK had decreased by approximately 0.7% whereas the CPO sales volume had increased by 2% respectively for the current quarter.

The gross profit for the oil palm operations had decreased by RM8.5 million, with loss before tax of RM36.2 million for the current quarter as compared to profit of RM9.5 million for the corresponding period of the preceding year. The decrease was in line with the decrease in revenue and impairment losses of RM43 million (included in other non-operating expenses) recognised during the current quarter.

Twelve months ended 31 December 2017 vs Twelve months ended 31 December 2016

The Group recorded revenue of RM399.2 million in the current financial year ended 31 December 2017 compared with RM384 million reported in the preceding year. The increase was principally attributed to the effect of higher realised average selling price and sales volume of CPO, partially offsetted by lower realised average selling price and sales volume of PK during the current financial year.

The Group recorded a loss before tax of RM1.5 million for the current financial year as compared to profit before tax of RM25.7 million for the preceding year. The decrease was principally in line with impairment losses of RM43 million (included in other non-operating expenses) recognised during the current financial year, partially offsetted by the increase in revenue.

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 year, the oil palm operations segment contributed 99.7% of the Group revenue of RM399.2 million.

The revenue of the oil palm operations increased by RM15.5 million to RM398.2 million in the current financial year compared with RM382.7 million reported in the preceding year. The increase was principally attributed to the effect of higher realised average selling price of CPO and sale volume of CPO, partially offsetted by lower realised average selling price of PK and lower sales volume of PK during the current financial year.

The average selling price and sales volume of CPO had increased approximately by 6.2% and 0.4% respectively whereas the selling price and sales volume PK had decreased by approximately 1.5% and 1.9% respectively for the current financial year.

The gross profit for the oil palm operations increased by RM13.4 million, whereas the profit before tax decreased by RM28.4 million respectively for the current financial year as compared to the preceding year. The decrease was mainly due to the impairment losses of RM43 million (included in other non-operating expenses) recognised during the current financial year, partially offsetted by the increase in revenue.

Other segments

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

Prospects for the Next 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 next financial year.


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