PETALING JAYA: Sime Darby Plantation Bhd posted a net profit of RM32 million for the third quarter ended Sept 30, 2019 in comparison with a net profit of RM126 million in the same quarter last year due to weaker average crude palm oil (CPO) and palm kernel (PK) prices realised which was further exacerbated by lower fresh fruit bunch production in the quarter.
Revenue for the quarter stood at RM2.82 billion. There is no comparative for the quarter and nine-months ended Sept 30, 2019 due to the change in the financial year end from June 30 to Dec 31.
Group managing director Mohamad Helmy Othman Basha (pix) said the group’s performance had been adversely impacted by volatile commodity prices and unpredictable weather.
“The results were also largely affected by the impairment charges for our assets in Liberia as we prepare to exit our business there. Our operations in Liberia continue to face challenges and uncertainties. It continues to report losses to-date since its commencement.
“Despite these difficulties, I believe the group will be more resilient as we put performance improvement measures in place to overcome the challenges and strive for greater profitability and productivity targets,” he said in a statement.
For the nine months period, Sime Darby Plantation reported a net profit of RM167 million from its continuing operations against net profit of RM556 million in the corresponding period of the previous year, while revenue stood at RM8.7 billion.
Looking ahead, Mohamad Helmy said that the group will continue to push forward with its latest strategies to thrive in the prevalent challenging business environment.
This includes balancing the profit contribution from both our upstream and downstream segments, strengthening our approach to improve operational efficiencies as well as maintaining disciplined management of our cost and liquidity.
“Given the group’s committed forward sales, the recent improvements in CPO and PK prices will have minimal impact on the group’s results for FY2019. Nevertheless, should the prices continue to rally, the group’s prospects will improve in the next financial year. By then, SD Plantation’s legacy issues impacting the group’s current results are also expected to be fully resolved,” he said.
source https://www.thesundaily.my/business/sime-darby-plantation-posts-rm32m-net-profit-in-third-quarter-LK1682184
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