KUALA LUMPUR: Chin Teck Plantations Bhd
, which saw its net profit fall 8% to RM25.3mil in the first quarter ended Nov 30, has issued a profit warning.
“The financial performance for the financial year ending Aug 31, 2023 (FY23) is expected to decline compared with the record profit of the previous FY22 and in line with the drop in crude palm oil (CPO) and palm kernel (PK) prices from the historically high levels,” Chin Tek said in a filing with Bursa Malaysia.
In the quarter to Nov 30, the plantation group’s revenue rose 8.2% to RM62.9mil from RM58.2mil a year ago due to significant increases in the sales volume of fresh fruit bunches (FFB), CPO, and PK even though the average selling prices decreased.
Chin Teck Plantations noted that its cost of sales increased substantially due to an increase in the plantation operating expenses, especially the rising cost of fertiliser.
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