Financials

Quarterly Report For The Financial Period Ended 30 June 2025

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Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the 2nd Quarter Ended 30 June 2025

Condensed Consolidated Statement of Financial Position
As at 30 June 2025

Review of performance

Financial review for current quarter and financial year to date

3 Months Ended 30.06.2025 vs 30.06.2024

For the three months ended 30 June 2025, the Group reported total revenue of RM 155.5 million, representing a 34.5% increase compared to RM115.6 million in the corresponding period of 2024. This was mainly due to increase in the selling price for Fruit Fresh Bunches (FFB), Crude Palm Oil (CPO) and Palm Kernel (PK) by 10.8%, 0.3% and 42.6% respectively. The sales volume of CPO and PK were higher by 40.1% and 34.0% respectively than the corresponding period of 2024. Arising from the increased selling price and sales volume, the gross profit increased by 0.9%, from RM 16.9 million to RM17.0 million. During this quarter, the company experienced a 21.8% decrease in profit before taxation whereas the profit after taxation declined by 40.5% during this quarter. As a result, the profit attributable to the owners of the company dropped to profit of RM 2.7 million by 31.8% from profit of RM4.0 million in the year 2024.

6 Months Ended 30.06.2025 vs 30.06.2024

For the six months ended 30 June 2025, revenue rose by 49.2%, from RM208.9 million to RM311.8 million. Gross profit is boosted by 83.1% from RM20.5 million to RM37.5 million. These increases were attributed to the growth in the sales production and selling price for Fresh Fruit Bunches (FFB), Crude Palm Oil (CPO) and Palm Kernel (PK). The CPO sales volume and selling price was increased by 37.6% and 9.7% while 25.6% and 56.3% increase in PK sales volume and selling price. In line with rising in sales volume and selling price, profit before tax surged to RM10.9 million, recovering from a loss of RM 2.1 million in the corresponding period of 2024. Similarly, both the profit after taxation and the profit attributable to owners are increased to RM4.6 million and RM3.4 million respectively.

Commentary on Prospects

In 2025, Malaysia's oil palm industry is expected to maintain a stable and moderately positive outlook, supported by resilient global demand for palm oil, especially from key markets like India, China, and the Middle East. Crude palm oil (CPO) prices are likely to remain firm, averaging around RM3,800 to RM4,200 per MT, driven by limited global edible oil supply and biofuel demand. Weather disruptions, particularly from El Niño effects, may tighten supply but also support price levels.

However, the industry continues to face chronic labor shortages, rising operational costs, and increasing pressure to meet sustainability and traceability standards, especially with the EU Deforestation Regulation (EUDR) coming into effect. In response, major players are accelerating mechanization, digitalization, and ESG compliance investments. Growth opportunities lie in downstream expansion, carbon credit monetization, and better land productivity through replanting with higher-yielding clones. Overall, 2025 presents a year of consolidation and transition for Malaysia's oil palm industry-balancing productivity, sustainability, and profitability.