Financials

Quarterly Report For The Financial Period Ended 30 September 2024

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Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the 3rd Quarter Ended 30 September 2024

Condensed Consolidated Statement of Financial Position
As at 30 September 2024

Review of performance

Financial review for current quarter and financial year to date

3 Months Ended 30.09.2024 vs 30.09.2023

For the three months ended 30 September 2024, the company achieved revenue of RM146.9 million, a 3.9% increase compared to RM141.3 million in the same period of 2023. However, the company recorded a gross profit of RM5.0 million, a significant drop from the gross profit of RM20.4 million in the prior year, reflecting a decline of 75.4%. Profit before taxation surged by 295.1% to RM31.8 million from RM8.1 million, while profit after taxation rose by 591.4% to RM32.2 million from RM4.7 million. Additionally, profit attributable to the owners of the company increased sharply by 558.1%, reaching RM32.7 million compared to RM5.0 million in Q3 2023.

9 Months Ended 30.09.2024 vs 30.09.2023

For the nine months ended 30 September 2024, the company reported revenue of RM355.8 million, which represents a 3.3% decrease from RM368.1 million in the same period of 2023. Gross profit declined by 13.9% to RM25.5 million from RM29.6 million in the previous year. Despite this, the company saw a significant turnaround in profitability, with profit before taxation improving to RM29.7 million from a loss of RM9.3 million, marking a 419.5% change. Profit after taxation reached RM24.4 million, compared to a loss of RM16.2 million, representing an improvement of 250.5%. Furthermore, profit attributable to the owners rose to RM26.6 million from the loss of RM12.5 million in the same period of 2023.

Commentary on Prospects

The outlook for Malaysia's palm oil industry in the fourth quarter of 2024 remains optimistic, with favorable market conditions despite ongoing challenges. Prices have surged to their highest since 2022, largely driven by constrained global supplies and strong demand from major importers, particularly India and China. Indonesia's biodiesel policy and the impacts of El Niño have tightened supply, benefiting Malaysian exports. Challenges include persistent labor shortages, environmental pressures, and evolving global trade policies. To address these, Malaysia is advancing sustainable practices, such as circular economy initiatives and adopting the Malaysian Sustainable Palm Oil (MSPO) certification. These measures not only strengthen Malaysia's position as a sustainable supplier but also align with shifting market expectations.