Sarawak Oil Palms’ 1Q net profit surges 80% on higher sales, lower costs
Sarawak Oil Palms Bhd reported a robust 80% surge in net profit for the first quarter of FY2024, reaching RM79.46 million compared to RM44.17 million in the same period last year. Revenue also saw a healthy increase of 9.8% year-on-year to RM1.33 billion, attributed to higher sales volume. Despite facing challenges from global economic conditions and softening commodity prices, the company remains focused on improving production efficiency and cost control measures.
KUALA LUMPUR (May 23): Sarawak Oil Palms Bhd’s (KL:SOP) net profit surged 80% year-on-year (y-o-y) in the first quarter, thanks to higher sales and lower production costs.
Net profit for the three months ended March 31, 2024 (1QFY2024) was RM79.46 million compared to RM44.17 million over the same period a year earlier, Sarawak Oil Palms said in an exchange filing. Revenue rose 9.8% y-o-y to RM1.33 billion from RM1.21 billion on higher volume, it said.
“The group is taking effective steps to improve its production through an aggressive recovery programme, including cost control and replanting programme,” Sarawak Oil Palms said. The industry will continue to face challenges in view of global economic conditions and softening of commodity prices, it flagged.
Average realised prices per ton for palm oil products stood at RM3,913 versus RM3,973 in 1QFY2023, while that of palm kernel products was 3.9% lower at RM2,267 versus RM2,359 in 1QFY2023.
Sarawak Oil Palms said the group’s performance will continue to be driven by the cyclical fresh fruit bunches production, global world edible oil price movement, as well as supply chain effects on fertilisers, chemicals and fuel prices which will affect production costs.
Shares in Sarawak Oil Palms ended four sen or 1.33% lower at RM2.96, valuing the planter at RM2.64 billion.
Source Link: https://theedgemalaysia.com/node/712719
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