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Financials

Quarterly Report For The Financial Period Ended 30 June 2018

Financials Archive

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INTERIM REPORT FOR THE SECOND QUARTER ENDED 30 JUNE 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 2, 2018 vs Quarter 2, 2017

The Group recorded revenue of RM66.9 million in the current interim quarter ended 30 June 2018 compared with RM82.9 million reported in the corresponding period of the preceding year. The Group's operating profit before tax was RM5 million for the current interim quarter as compared to RM8.5 million for the corresponding period of the preceding year. The decrease in operating profits was principally due to the effect of lower realised average selling prices and lower sale volumes of CPO and PK during the current interim quarter.

The Group recognised a profit arising from changes in fair value of biological assets of RM0.5 million during the current interim quarter compared to a loss of RM2.7 million recognised in the corresponding period of preceding year.

As a result of the decrease in operating profits and changes in fair value of biological assets as explained above, the Group recorded a profit before tax of RM5.5 million for the current interim quarter compared against RM5.8 million for 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 RM22.5 million and RM6.7 million respectively, whereas mill operations recorded a revenue and segment profit of RM64 million and RM3.5 million respectively.

For the current financial period, the oil palm operations segment contributed 99.7% of the Group revenue of RM66.9 million.

The revenue of the oil palm operations decreased by RM16 million to RM66.7 million in the current interim quarter compared with RM82.7 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 13.5% whereas the sales volumes of CPO and PK had decreased by approximately 7.7% and 2.5% respectively for the current interim quarter.

The operating profit before tax for the oil palm operations (after deducting administrative and finance cost) was RM5.5 million for the current interim quarter as compared to RM8.9 million for the corresponding period of the preceding year, in line with the decrease in revenue for 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 a production growth in the coming quarter following the improvement of field condition and peak crop season.

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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