Thursday 28 Mar 2024
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KUALA LUMPUR (Nov 17): IOI Corp Bhd posted a lower underlying profit of RM268.9 million for its first quarter ended Sept 30, 2014 (1QFY15), 24% lower from RM352.1 million in 1QFY14 mainly due to lower contribution from its resource-based manufacturing segment.

In its results announcement, IOI Corp said that its resource-based manufacturing profit stood at RM108.8 million, 50% lower than RM218.6 million posted in the previous corresponding quarter.

“The lower manufacturing profit is mainly due to lower margin as well as lower sales volume from oleochemicals and refinery sub-segments,” it said.

Revenue for 1QFY15 was 6.76% lower at RM3.02 billion from RM3.24 billion in the previous corresponding quarter.

IOI Corp’s net profit fell to RM176.7 million in 1QFY15, 41.5% lower from RM301.8 million in the previous corresponding quarter as property contribution ceased after the listing of IOI Properties Group Bhd.

Profit contribution from its property division in 1QFY14 was RM119.7 million, which was equivalent to nearly 40% of the group’s total.

Nonetheless, plantation profit expanded by 12% to RM281 million from RM250.1 million in the previous corresponding quarter due mainly to higher fresh fruit bunches (FFB) production as well as higher palm kernel prices realised.

FFB production for 1QFY15 was about 10% higher at 967,202 million tonnes.

“We expect crude palm oil price to remain at the prevailing level before trending higher towards the beginning of next year when palm oil production enters its seasonal lows,” it said, adding that it expects higher contribution from its Indonesian plantation subsidiary going forward.

“Overall, the group’s performance for FY15 is expected to be satisfactory,” IOI Corp added.

IOI Corp share price dropoped 0.42% or two sen at RM4.70 today, giving it a market capitalization of RM29.8 billion.

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