Cropmate optimistic amid agriculture sector issues
PETALING JAYA: Cropmate Bhd remains cautiously optimistic on demand prospects, noting that fertiliser consumption is closely tied to the broader political, economic and climatic factors affecting the agriculture sector.
'Our team is focused on strategic capital investments and product innovation to strengthen Cropmate's market position and long-term value creation,' managing director Lee Chin Yok said in a statement.
In the second quarter ended June 30, the fertiliser manufacturer reported a net profit of RM3.4mil, or 0.47 sen per share, lifting first-half profit to RM7.2mil, or 0.98 sen per share.
Quarterly revenue came in at RM45.7mil, bringing total revenue for the first half to RM94.3mil.
'We are encouraged by our first-half results, particularly in light of the seasonal and external pressures faced by the agriculture sector. Our ability to sustain profitability and margins underscores the strength of our business fundamentals.
'We continue to focus on improving operational efficiency, supporting our customers' productivity, and executing our growth initiatives,' Lee said.
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'The US government's decision to cut reciprocal tariffs on Malaysian exports from 25% to 19% reflects Miti's methodical and disciplined trade diplomacy efforts. 'This tariff rate, which is roughly in line with the rest of our peers in Asean, will continue to support our competitiveness,' it said. In July, trade with the United States, which accounted for 11% of Malaysia's total trade, declined by 7.6% y-o-y to RM29.34bil. Miti data showed Malaysia's exports to the United States grew by 3.8% to RM18.47bil, contributed by higher exports of E&E products, manufactures of metal and rubber products while Malaysia's imports from the US decreased by 22.2% to RM10.88bil. On a month-on-month basis, US trade and exports increased by 7.4% and 13.5%, respectively while US imports contracted by 1.5%, it said. 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'Trade has rebounded on a y-o-y basis and we also saw improvements in the trade balance. 'In April and May, we saw a fairly weak trade surplus, now this has somewhat normalised because the capital imports went back to normal (we saw really high imports in the last two months which affected the trade surplus and the current account),' Ahmad Nazmi said. 'Assuming there is no more spike in capital imports, trade balance should stay range bound. 'Aside from this, the impact of tariffs on the country's exports is not yet seen since it is only effective in August, but we anticipate the 'front-loading' effect by the United States will ease,' he added. For the January to July 2025 period, trade, exports and imports achieved their highest cumulative value, Miti's data revealed. Trade rose 4.7% to RM1.731 trillion in the year-to-date y-o-y period, with exports expanding 4.3% to RM900.47bil; and imports rose by 5.1% to RM830.16bil which resulted in a trade surplus of RM70.32bil. 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'Overall imports growth has been worrying in recent months, especially for a sustained decline in imports of intermediate goods, which presage lower production ahead,' Lee said. According to the government's July trade data, Malaysia's total imports in July 2025 edged up by 0.6% y-o-y to RM125.47bil. The three main categories of imports by end use, which accounted for 68.1% of total imports were intermediate goods, which was valued at RM56.82bil or 45.3% of total imports – this segment declined by 17.8%, due to lower imports of parts and accessories of non-transport capital goods. Another segment of imports were capital goods at some RM18.19bil or 14.5% of total imports, which increased by 20.6%; and consumption goods that's valued at RM10.43bil or 8.3% of total imports which contracted by 5%, due to lower imports of non-durables, the data showed. 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The Star
13 hours ago
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Cropmate optimistic amid agriculture sector issues
The fertiliser manufacturer reported a second-quarter net profit of RM3.4mil. PETALING JAYA: Cropmate Bhd remains cautiously optimistic on demand prospects, noting that fertiliser consumption is closely tied to the broader political, economic and climatic factors affecting the agriculture sector. 'Our team is focused on strategic capital investments and product innovation to strengthen Cropmate's market position and long-term value creation,' managing director Lee Chin Yok said in a statement. In the second quarter ended June 30, the fertiliser manufacturer reported a net profit of RM3.4mil, or 0.47 sen per share, lifting first-half profit to RM7.2mil, or 0.98 sen per share. Quarterly revenue came in at RM45.7mil, bringing total revenue for the first half to RM94.3mil. 'We are encouraged by our first-half results, particularly in light of the seasonal and external pressures faced by the agriculture sector. Our ability to sustain profitability and margins underscores the strength of our business fundamentals. 'We continue to focus on improving operational efficiency, supporting our customers' productivity, and executing our growth initiatives,' Lee said.
New Straits Times
20 hours ago
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Cropmate posts RM3.5mil net profit on RM45.7mil revenue in Q2
KUALA LUMPUR: Cropmate Bhd posted a net profit of RM3.5 million for its second quarter ended June 30, 2025. The company recorded revenue of RM45.7 million during the quarter, with local sales contributing about 96.9 per cent to the total. Cropmate achieved a gross profit margin of 17.5 per cent for the period. It said pre-tax profit stood at RM4.6 million, compared with RM5.0 million in the preceding quarter, as revenue slipped 5.9 per cent due to lower sales volume of fertilisers. Cropmate said its performance was mainly underpinned by sales to oil palm plantations and durian orchards. Looking ahead, the company said demand for fertilisers is expected to remain largely dependent on the performance of the plantation and food crop sectors. It added that any changes in political, social and economic conditions, including tariffs or trade restrictions, could affect demand and disrupt supply chains. Cropmate managing director Lee Chin Yok said the company remains committed to enhancing operational efficiency, helping customers boost productivity, and driving its growth initiatives. The company had used RM23.2 million from the RM42 million raised through its initial public offering. The proceeds were channelled towards working capital, capital expenditure and listing expenses. Cropmate said it is advancing its strategic expansion plan, which includes the proposed acquisitions of Factory Lots 8949 and 8950 and the planned disposal of Lot 51.
