Latest Quarterly Results

Quarterly Report For The Financial Period Ended 30 June 2021

Financials Archive

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Unaudited Condensed Statement Of Consolidated Comprehensive Income

Unaudited Condensed Consolidated Statement Of Financial Position

Performance Review

For the second quarter of 2021, the Group recorded an unaudited pre-tax profit of RM64.0 million which was higher than RM4.8 million recorded in the corresponding quarter last year. Positive result was attributable to better profit at all regions and also boost by a much improved financial performance of Sabah region.

Revenue increased by RM75.7 million from RM167.1 million to RM242.8 million due to favourable palm products prices which led to the profit from operations of RM75.6 million.

CPO realised an average selling price of RM4,014 per MT which surpassed last year's corresponding quarter of RM2,367 per MT by RM1,647 per MT (70%). PK's average price of RM2,647 per MT was higher by RM1,296 per MT (96%).

FFB production for the quarter of 231,702 MT was lower than the production in the second quarter of 2020 of 270,383 MT. FFB yield also reduced from 4.0 MT/Ha to 3.4 MT/Ha in the same period. OER increased from 21.0% to 21.2% whereas KER reduced from 4.3% to 4.1%.

For the six-month period of 2021, the Group recorded an unaudited pre-tax profit of RM83.3 million which surpassed the corresponding period last year of RM6.0 million.

CPO realised an average selling price of RM3,902 per MT which surpassed last year's corresponding quarter of RM2,558 per MT by RM1,344 per MT (53%). PK's average price of RM2,593 per MT was higher by RM1,088 per MT (72%).

FFB production for the six-month period of 411,867 MT was lower than last year's production of 2020 of 480,240 MT. FFB yield also reduced from 7.2 MT/Ha to 5.9 MT/Ha in the same period. OER and KER reduced from 21.0% to 20.8% and 4.3% to 4.1% respectively.

Peninsular Malaysia Region

The Peninsular Malaysia region achieved a segment profit of RM60.7 million, an increase of RM26.5 million from a profit of RM34.2 million for the corresponding period last year. The higher profit was due to the higher palm product prices. FFB crop for the period of 158,376 MT was lower as compared to 190,838 MT in 2020.

Sabah region

Sabah region recorded a segment profit of RM42.6 million for the first six months of 2021 which was higher compared to the corresponding period last year of RM10.2 million. FFB production of 208,170 MT was lower as compared to 238,131 MT for the same period last year. The main reason for the improved performance was the higher selling prices.

Sarawak region

Sarawak region's segment profit of RM5.7 million was a turnaround compared to last year's loss of RM7.8 million. Higher palm products prices contributed to the profit which cushioned the drop in production from 51,271 MT in the corresponding period of 2020 to 45,321 MT in the current period.

Prospects for Rest of the Year

The Group's prospects for the coming year are largely influenced by the crop production, selling prices and ongoing Boustead Group's Reinventing Boustead strategy.

CPO prices appreciated further in Q2 2021 due to the ongoing production problems in Malaysia and a recovery of palm oil purchases largely from India, China and Europe. COVID related restrictions are making it impossible for foreign workers to enter Malaysia resulting in severe shortage of workers which then leads to crop losses and lower yield despite improved weather conditions.

The medium term production prospect remains uncertain given the deteriorating supply outlook and labour problems in the palm oil sector particularly in Malaysia. Weather uncertainties, particularly in the northern hemisphere, will also affect the production of oilseeds, vegetable oils and oil meals due to soil moisture deficits. There is still a good chance of La Nina returning in the last quarter this year which could lead to heavy rains and flooding in the oil palm growing areas in South East Asia.

Current global inventories are still low which is keeping palm oil prices at an elevated level for now and will contribute positively to our bottom line. Any new changes in the import and export tax structures of consuming and producing countries and the global supply-demand dynamics of competing edible oils will continue to influence CPO prices. The Government's accelerated vaccination programme may raise hope that plantation operations can continue to be carried out as usual.

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