United Malacca declares 6 sen dividend despite 4Q net loss of RM13.6 mil

TheEdge Wed, Jun 26, 2019 09:13pm - 4 years View Original


KUALA LUMPUR (June 26): Lower prices of crude palm oil (CPO) and palm kernel (PK) weighed on United Malacca Bhd in the fourth quarter ended April 30, 2019 (4QFY19), as it posted a net loss of RM13.56 million against a net profit of RM968,000 in the previous year's same quarter.

Loss per share amounted to 6.46 sen, compared with an earning per share of 0.46 sen in 4QFY18.

In a filing today, the group said lower prices were recorded in the quarter for CPO and PK by 19% and 39% respectively, as well as low fresh fruit bunch (FFB) yield by both its Malaysian and Indonesian operations.

Its young matured palms (Malaysia 2,419 hectares and Indonesia 3,384 hectares) were also impacted by high unit cost of production.

Revenue was also down by 10% to RM56.43 million, from RM62.37 million a year ago.

However, the group is maintaining its second interim divided at 6 sen a share for the financial year ended April 30, 2019 (FY19), to be paid on Aug 21.

For the full year, the group’s net loss widened to RM41.76 million against a net profit of RM22.75 million previously, while revenue also fell 27% to RM203.74 million, from RM278.29 million a year ago.

Moving forward, the group expects higher FFB production for the financial year FY20, due to recovery of oil palms from adverse weather in the past two years, as well as an additional area of 461 hectares maturing.

However it does expect CPO prices to remain at its current level, posing a challenge for the segment in FY20.

United Malacca closed unchanged today at RM5.25, for a market capitalisation of RM1.1 billion.

The content is a snapshot from Publisher. Refer to the original content for accurate info. Contact us for any changes.






Related Stocks

UMCCA 5.100

Comments

John Bin Too
Like · Reply
Loss. But yet can declare dividend. Funny!

Login to comment.