Latest news with #IOICorp
New Straits Times
4 days ago
- Business
- New Straits Times
IOI Corp's FFB growth target maintained at 2.5pct for FY2025
KUALA LUMPUR: IOI Corporation Bhd is maintaining its fresh fruit bunch (FFB) output growth target at 2.5 per cent for the financial year 2025 (FY25), said Hong Leong Investment Bank Bhd (HLIB Research). According to the bank, FFB production has rebounded both month-on-month and year-on-year since March 2025, supported by favourable weather conditions. "The output recovery has helped to narrow the group's year-to-date (YTD) FFB output decline to just 0.3 per cent for the first ten months of FY25. "Management indicated that the recovery trend is likely to continue in the coming months, potentially allowing IOI Corp to exceed its initial FY25 FFB output growth guidance of one to two per cent. "As such, we maintain our FY25 FFB output growth assumption of 2.5 per cent," it said in a note. Meanwhile, HLIB Research noted that several factors, including lower FFB output, the minimum wage hike effective February 2025, and a higher windfall profit levy, contributed to a 1.3 per cent YoY increase in IOI Corp's crude palm oil (CPO) production cost for the third quarter of FY25 (3Q25), raising it to RM2,530 per metric tonne. This brought the average CPO production cost for the first nine months of FY25 to RM2,104 per metric tonne, representing a 1.5 per cent decline compared to the same period last year. Given the anticipated strong FFB output in 4Q25, the firm said management remains confident in keeping the full-year CPO production cost below RM2,100 per metric tonne. Furthermore, HLIB Research said IOI Corp's decent performance in the manufacturing segment is expected to be sustained into 4Q25, if not improved further. It added that earnings at the manufacturing segment improved QoQ in 3Q25, with a profit of RM81.4 million, primarily driven by margin expansion at the refinery sub-segment, which more than mitigated weakness at the oleochemical and speciality fats sub-segments. "Management shared that earnings at the manufacturing segment should at least track 3Q25's performance (if not better), supported by sustained performance at the refining sub-segment arising from stable margins and improving availability of feedstock. "This includes gradual demand recovery for oleochemical products, albeit input prices remained elevated, as well as an improving contribution from the speciality fats sub-segment (as production normalised from the loss of production)," it said. On that note, HLIB Research also highlighted that IOI Corp's accelerated replanting programme, covering 8,000 to 9,000 hectares per annum since FY19, will continue into FY26. This is expected to reduce the group's average age profile to approximately 13 years by the end of FY26. The firm also noted that construction of the zero-waste paper pulp plant, undertaken through Nextgreen IOI Pulp Sdn Bhd (NIP), a 45 per cent owned joint venture unit of IOI Corp, is scheduled to begin in the first half of 2026 (1H26), with completion targeted by the end of 2027. Upon completion, it said the facility will have an initial annual production capacity of 150,000 metric tonnes of chemical bleached pulp.
The Star
27-05-2025
- Business
- The Star
IOI Corp sees higher FFB output in 2Q25
PETALING JAYA: IOI Corp Bhd is expecting higher fresh fruit bunch (FFB) production in second quarter 2025 (2CY25), due to improved weather conditions as well as the end of low production cycle. The plantation group said the expected production rise resulting in higher palm oil stock is likely to exert downward pressure on crude palm oil (CPO) price, although the resumption of demand from major buyers, following an earlier slowdown, and Indonesia's B40 biodiesel mandate are expected to provide key price support moving forward. Releasing its results for the third financial quarter (3Q25) ended March yesterday, IOI Corp saw net profit more than double year-on year (y-o-y) to RM262.3mil, underpinned by an 11.1% revenue growth to RM2.74bil. For the nine months ended March, the group posted a net profit of RM1.08bil, a 42.2% y-o-y jump, as turnover also grew by 18.6% to RM8.37bil. IOI Corp said the improved 3Q25 as well as cumulative results was primarily due to better contribution from its plantation segment, which benefitted from higher CPO and palm kernel prices realised, as well as higher share of associates results. Nevertheless, it said this was partially offset by higher CPO stock level, lower FFB production and lower oil extraction rate. The better performance saw earnings per share improve to 4.23 sen for 3Q25, and 17.47 sen for the nine months ended March 2025. Total dividends declared by IOI Corp stands at five sen per share, with the company not proposing any dividend for 3Q25 but having declared the aforementioned five sen in 2Q25. Separately, the group said the recent price correction has improved palm oil's competitiveness relative to other vegetable oils. 'Taking these factors into account, we project CPO price to range between RM3,700 and RM4,000 per tonne for the rest of our financial year ending June 30, 2025,' it said in a filing to Bursa Malaysia. Furthermore, the group said FFB production for 4Q25 is expected to recover significantly over 3Q25, while anticipating this higher FFB production will help sustain a steady financial performance, despite the lower CPO price expected for the quarter ending June. It added that the relatively high palm kernel oil price has kept sales volume and margins subdued for some time, but going forward, the recent decline in palm kernel oil price is expected to support improved sales volume and margins. 'Coupled with our continued focus on operational efficiency and cost optimisation, we anticipate to maintain our financial performance in the final quarter for the financial year ending June 2025,' said IOI Corp.
New Straits Times
27-05-2025
- Business
- New Straits Times
IOI Corp 3Q net profit soars to RM262.3mil on strong plantation performance
KUALA LUMPUR: IOI Corporation Bhd's net profit for the third quarter ended March 31, 2025 (3Q) jumped by 113 per cent to RM262.30 million from RM123.10 million in 3Q a year ago. The rise in profit was due mainly to higher contribution from the plantation segment, partially offset by lower contribution from the resource-based manufacturing segment. Revenue increased by 11 per cent to RM2.73 billion from RM2.46 billion in the same period a year ago, said the leading global integrated and sustainable palm oil player in a filing with Bursa Malaysia. The plantation segment's 3Q profit before tax (PBT) of RM310.6 million was 27 per cent higher than 3Q PBT a year ago of RM244.9 million, due to higher crude palm oil (CPO) and palm kernel prices realised and higher share of results from associates, but was partially offset by higher CPO stock level, lower fresh fruit bunches (FFB) production and lower oil extraction rate. "The resource-based manufacturing segment profit in the quarter reviewed was RM71.1 million as compared to profit in 3Q of RM44.4 million previously, due mainly to reduced contribution from the oleochemical sub-segment with lower sales volume and lower share of results from associate, but was partially mitigated by higher contribution from the refinery sub-segment with higher margin," IOI Corp said. For the cumulative nine-month period, the group posted a higher net profit of RM1.08 billion from RM762.50 million in the same period a year ago, while revenue increased to RM8.37 billion from RM7.06 billion previously. IOI Corp projects the CPO price to range between RM3,700 and RM4,000 per tonne for the rest of its financial year ending June 30, 2025 (FY2025). For the plantation segment, FFB production for 4Q FY2025 is expected to recover significantly over 3Q FY2025, and anticipates that this higher FFB production will help sustain a steady financial performance, despite the lower CPO price expected for 4Q FY2025. "Overall, the group expects its operating and financial performance for 4Q FY2025 to be satisfactory," it added. -- BERNAMA
