Chin Teck’s 1Q net profit falls 8%, weighed down by higher fertiliser cost, lower JV income

TheEdge Mon, Jan 30, 2023 08:00pm - 8 months View Original

KUALA LUMPUR (Jan 30): Chin Teck Plantations Bhd’s net profit fell 8.0% year-on-year for the first quarter ended Nov 30, 2022 due to higher fertiliser cost, coupled with lower income from the group’s oil palm plantation joint ventures in Indonesia.

The net profit declined to RM25.3 million from RM27.48 million a year ago, despite revenue growing 8.2% to RM62.96 million from RM58.20 million, thanks to higher sales volume.

Chin Teck said harvesting activities by its joint venture in Indonesia’s South Sumatera province were delayed due to unrest in villages neighbouring the estate.

“Commencement of harvesting is pending clearance by the relevant authorities,” it said in a statement.

Going forward, Chin Teck cautioned that its financial performance for the current year is expected to decline from the previous year, in line with the drop in crude palm oil and palm kernel prices.

The group had in December last year declared an interim dividend of eight sen and a special dividend of two sen, both to be paid on Tuesday (Jan 31).

Shares of Chin Teck closed 11 sen or 1.4% higher at RM8.22 on Monday (Jan 30), giving the group a market capitalisation of RM751.0 million.

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