PETALING JAYA: IOI Corp Bhd saw its net profit tumble 67.2% in the second quarter ended Dec 31, 2018 (Q2 FY19) to RM195.5 million, from RM595.9 million in the previous corresponding quarter.
It was due to lower plantation profit and total net foreign currency translation loss on foreign currency denominated borrowings and deposits, the group told Bursa Malaysia today.
Its plantation segment profit for Q2 FY19 of RM117.3 million was 66% lower than the RM340.9 million for Q2 FY18, mainly due to lower crude palm oil (CPO) and palm kernel (PK) prices realised.
Average CPO price and PK price realised for Q2 FY19 was RM1,932/MT and RM1,444/MT, respectively versus RM2,644/MT and RM2,621/MT for Q2 FY18.
However, its resource-based manufacturing segment recorded a higher profit of RM139.3 million for Q2 FY19 from RM128.3 million underpinned by higher sales volume and margins from oleochemical and refining sub-segments as well as share of associate result from Bunge Loders Croklaan Group BV.
IOI’s revenue for the quarter dipped 6.4% to RM1.88 billion compared with RM2.01 billion in the same period a year ago.
It has proposed to declare an interim dividend of 3.5 sen per share for the quarter under review.
For the six-month period, the group’s net profit plunged 65% to RM339.3 million from RM955.9 million a year ago, while revenue was slightly down by 3.1% to RM3.76 billion, from RM3.88 billion previously.
On prospects for plantation segment, IOI expects its fresh fruit bunches production to decline in Q3 FY19 in line with seasonal trend.
However, with the increase in current CPO price, it foresees a slight improvement in Q3 FY19 financial performance from the plantation segment.
“Movements in the US dollar/ringgit and euro/ringgit exchange rates will continue to result in non-cash forex translation gain or loss on our US dollar and euro–denominated borrowings,” it added.
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