Financials

Quarterly Report For The Financial Period Ended 31 March 2025

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Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the 1st Quarter Ended 31 March 2025

Condensed Consolidated Statement of Financial Position
As at 31 March 2025

Review of performance

Financial review for current quarter and financial year to date

3 Months Ended 31.03.2025 vs 31.03.2024

For the three months ended 31 March 2025, the Group reported total revenue of RM 156.3 million, representing a 67.4% increase compared to RM 93.3 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 21.7%, 73.8% and 23.4% respectively. The sales volume of CPO and PK were higher by 34.5% and 16.6% respectively than the corresponding period of 2024. Arising from the increased selling price and sales volume, the gross profit surged by 471.2%, from RM 3.6 million to RM 20.5 million. The company experienced an uplift in its profit before taxation and profit after taxation by 153.3% and 118.8% respectively. As a result, the profit attributable to the owners of the company increased to profit of RM 0.7 million by 106.7% from loss of RM10.1 million in the year 2024.

Commentary on Prospects

In 2025, Malaysia's oil palm industry is navigating a period of cautious optimism, supported by firm CPO prices (RM3,800–RM4,300/MT), recovering global demand, and modest production growth. However, structural challenges persist, including labour shortages, ageing trees, and increasing compliance costs tied to global sustainability regulations such as the EU Deforestation Regulation. The industry is under pressure to adopt mechanisation, enhance traceability, and meet MSPO 2.0 standards to retain market access. Concurrently, there is a strategic shift towards downstream integration, biomass valorisation, and bioeconomy initiatives to diversify revenue streams and reduce reliance on commodity cycles. The ongoing tariff tensions between Malaysia and the USA further complicate the outlook, potentially limiting market access for downstream palm-based products and discouraging foreign investment. These trade frictions could lead Malaysian producers to deepen trade ties with alternative markets while accelerating innovation in value-added palm derivatives to offset tariff impacts. To remain competitive, plantation players must focus on operational efficiency, ESG compliance, and long-term value creation amidst both structural and geopolitical headwinds.