United Malacca posts RM7.43m profit for 2Q, declares three sen dividend

TheEdge Tue, Dec 15, 2020 09:40pm - 4 months ago

KUALA LUMPUR (Dec 15): United Malacca Bhd posted a net profit of RM7.43 million for the second quarter ended Oct 31, 2020 (2QFY21), down from RM36.89 million a year ago, as the previous year registered a gain of RM49.3 million from the disposal of non-current assets held for sale.

The group's revenue, meanwhile, rose 27% to RM97.95 million from RM76.99 million previously, amid higher average crude palm oil (CPO) and palm kernel prices.

It said both its Malaysian and Indonesian ops registered higher earnings before interest, taxes, depreciation, and amortisation (Ebitda). Malaysian ops' Ebitda improved to RM23.3 million from RM3.7 million, while Indonesian ops' Ebitda was at RM3.2 million versus RM1 million previously.

Compared with the immediate preceding quarter of 1QFY21, United Malacca's net profit doubled from RM3.55 million profit, while revenue grew 13% from RM86.79 million.

The group declared a first interim dividend of three sen per share, to be paid on Feb 4, 2021.

For the cumulative six months ended Oct 31, United Malacca's net profit dropped 85% to RM10.99 million from RM73.84 million a year ago — mainly due to the absence of disposal gain. Revenue, meanwhile, grew 54% to RM184.74 million from RM120.32 million.

On prospects, United Malacca expects fresh fruit bunch (FFB) production to increase during the financial year ending April 30, 2021 (FY21) on higher yields, better age profile and an increase in mature area in oil palm estates in Kalimantan, Indonesia.

"Management's priority remains focused on improving labour productivity and cost efficiency as well as increasing FFB yield. The rising trend of CPO prices, coupled with higher FFB production, is expected to improve the group's financial results. However, the group is cautious in view of the uncertainty in the global demand for CPO due to the Covid-19 pandemic," it added.

United Malacca's share price closed down six sen or 1.14% to RM5.20, bringing its market capitalisation to RM1.09 billion.

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