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Financials

Quarterly Report For The Financial Period Ended 30 September 2018

Financials Archive

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INTERIM REPORT FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2018

Condensed Consolidated Statement of Financial Position

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

Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income

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

Review of Performance

Quarter 3, 2018 vs Quarter 3, 2017

The Group recorded revenue of RM83.6 million in the current interim quarter ended 30 September 2018 compared with RM106.5 million reported in the corresponding period of the preceding year. The Group's operating profit before tax was RM12.7 million for the current interim quarter as compared to RM7.0 million for the corresponding period of the preceding year. The increase in operating profits was principally due to the effect of lower cost of sales partially offsetted by lower realised average selling prices and sale volumes of CPO and PK during the current interim quarter.

The Group recognised a loss arising from changes in fair value of biological assets of RM0.3 million during the current interim quarter compared to a gain of RM5.5 million recognised in the corresponding period of preceding year.

The Group recorded a profit before tax of RM12.4 million for the current interim quarter, consistent with the corresponding period of the preceding year.

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

Oil Palm Operations

The oil palm operations comprise estate and mill operations. During the current interim quarter, estate operations recorded a revenue and segment profit of RM27.9 million and RM13.1 million respectively, whereas mill operations recorded a revenue and segment profit of RM78.5 million and RM4.7 million respectively.

For the current financial period, the oil palm operations segment contributed 99.7% of the Group revenue of RM83.6 million.

Revenue of the oil palm operations decreased by RM22.8 million to RM83.4 million in the current interim quarter compared with RM106.2 million reported in the corresponding period of the preceding year. The decrease was principally attributed to the effect of lower realised average selling prices of CPO and PK and lower sales volumes of CPO and PK.

Both average selling prices of CPO and PK had decreased approximately by 18.4% and 24.3% whereas sales volumes of CPO and PK had decreased by approximately 3.2% and 19.3% respectively for the current interim quarter.

The operating profit before tax for the oil palm operations (after deducting administrative and finance cost) was RM13.2 million for the current interim quarter as compared to RM7.4 million for the corresponding period of the preceding year, was principally due to the effect of lower cost of sales partially offsetted by lower realised average selling prices and sale volumes of CPO and PK during the current interim quarter.

Other segments

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

Prospects for the Current Financial Year

The Group's current focus on transformation and reform of the management, strengthening and improving the standard operating procedures with the ultimate goal to achieve a better yield for the current financial year is starting to bear results.

The Group anticipates an improved production volume in the coming quarter following the improvement of field conditions.

Barring any unforeseen circumstances, the Board is confident that with these improvements in place, the Group will achieve satisfactory results in the current financial year.


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