IOI Corp Q1 net profit declined to RM167.5m

KUALA LUMPUR: IOI Corp Bhd’s net profit for the first quarter ended Sept 30, 2022 (Q1’23) slipped to RM167.5 million from RM277.6 million in the same quarter last year on lower contribution from plantation segment.

However, revenue was slightly higher at RM3.67 billion compared with RM3.63 billion previously.

“The plantation segment profit for Q1’23 of RM351.8 million was 28% lower than the profit for Q1’22 of RM487 million due mainly to lower fresh fruit bunches (FFB) production and higher cost of production mitigated by higher crude palm oil (CPO) price realised.

“Average CPO price realised for Q1’23 was RM4,496 per tonne compared to RM4,032 per tonne in Q1’22,” it said in a filing with Bursa Malaysia on Nov 25.

Meanwhile, it said the resource-based manufacturing segment profit for Q1’23 is RM128.5 million as compared with RM46.1 million for Q1FY2022, mainly due to higher margins from oleochemical and refining sub-segments, partly offset by lower sales volume from these sub-segments.

On prospects, it said the financial performance for the remaining periods of FY23 is expected to be satisfactory amidst challenging operating conditions due to the anticipated firm CPO price during the next two quarters.

“For our plantation segment, our Q2’23 oil palm fruits production is expected to drop only slightly against the seasonal downward trend as our young palm trees are entering into a delayed peak production cycle and as more migrant workers are employed in our plantations.

“As for our refinery and commodity marketing sub-segment, demand for palm oil is expected to moderate during the winter months in the Northern Hemisphere while margins are volatile due to changes in Indonesia’s palm oil export levy structure,” it said.

It added that operating conditions in its oleochemical sub-segment are expected to be challenging with high energy costs and the economic slowdown in various parts of the world. - Bernama

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