Latest news with #JohorPlantationsGroupBhd
The Sun
2 days ago
- Business
- The Sun
Johor Plantation posts robust results, declares 1.25 sen dividend
PETALING JAYA: Johor Plantations Group Bhd recorded a 51% year-on-year (y-o-y) increase in net profit for the first half of 2025 (H1'25), reaching RM150.64 million. Revenue saw a 12.6% increase to RM738.72 million, compared to the same period last year. While production volumes were lower y-o-y, the group's performance was supported by higher selling prices for crude palm oil (CPO) and palm kernel (PK), alongside stronger outside crop purchase (OCP) that helped sustain throughput and strengthen profitability. Following this strong performance, the board has declared a second interim dividend of 1.25 sen per share for the quarter, reflecting an earnings per share of 3.01 sen, rewarding its shareholders with a total dividend payout of RM31.25 million. For Q2'25, the group reported revenue of RM398.29 million, representing a 10.4% increase from RM360.91 million in the same quarter last year. Net profit increased by 50% to RM75.37 million, compared to RM50.26 million in Q2'24. Revenue from CPO increased 4.8% y-o-y in Q2'25 to RM323.39 million, with delivery volumes up 1.9% to 74,667 tonnes. PK revenue surged 46.1% y-o-y to RM73.07 million, supported by a 2.1% rise in delivery volumes to 19,546 tonnes. For OCP, Johor Plantation saw an 11.9% increase y-o-y in external crop purchases, reflecting the effectiveness of its strategy to boost OCP. Commenting on the results, Johor Plantation managing director Mohd Faris Adli Shukery said the company is pleased to report another strong performance, driven by disciplined efforts across the upstream segment and continued progress in expanding external crop sourcing. 'At the same time, we continue to enhance operational efficiency, optimise our inventory, and manage costs proactively, all guided by our steadfast commitment to sustainability, which remains at the heart of our long-term value creation. 'Looking ahead, while we remain mindful of potential demand-supply imbalances in the CPO market, we are confident in our ability to navigate these conditions. Our focus remains on optimising price realisation, sustaining production growth, exercising rigorous cost control, increasing processing volume and advancing our downstream expansion,' he said in a statement. In addition to earnings, Johor Plantation also announced a key leadership transition with the retirement of its chief financial officer (CFO) Aziah Ahmad effective Sept 1. Aziah has been a vital member of the Kulim (Malaysia) Bhd and Johor Corporation group since 2014, holding senior finance leadership roles. Zain Azrai Zainal Abidin will succeed her as CFO, effective Sept 1. A certified public accountant with over 27 years of experience, including more than a decade as CFO in several leading companies, Zain Azrai brings deep expertise in finance, strategy, treasury, investment management, stakeholder engagement, and audit. He joined the company in June as deputy CFO and has been working closely with Aziah to ensure a seamless leadership transition.
New Straits Times
2 days ago
- Business
- New Straits Times
Johor Plantations issues RM200mil Sustainability Sukuk Wakalah-IMTN
KUALA LUMPUR: Johor Plantations Group Bhd (JPG) has issued Series 2 Sukuk Wakalah-Islamic Medium Term Notes Programme (IMTN), its inaugural Sustainability Sukuk Wakalah-IMTN, in aggregate of RM200 million in nominal value under the IMTN programme. In a statement, it said the 10-year sukuk, maturing on Aug 15, 2035, offers a periodic distribution rate of 3.70 per cent per annum. "The favourable rates achieved in this sukuk issuance reflect the strong investor confidence in JPG. "The final oversubscription of 4.93 times on the Sustainability Sukuk Wakalah-IMTN during the bookbuilding process underscores robust demand and investor trust in our sustainability commitment and solid operational performance, positioning us well for future growth," it said. JPG said proceeds from the sukuk issuance shall be utilised to finance the Shariah-compliant capital expenditure of JPG's Integrated Sustainable Palm Oil Complex (ISPOC), an eligible green project under the framework. Maybank Investment Bank Bhd is the principal adviser and sustainability structuring adviser for the Sukuk Wakalah programmes. "The joint lead arrangers for the Sukuk Wakalah programmes are CIMB Investment Bank Bhd and Maybank Investment Bank Bhd.
New Straits Times
3 days ago
- Business
- New Straits Times
Johor Plantations earnings outlook trimmed on lower FFB growth
KUALA LUMPUR: Johor Plantations Group Bhd's earnings potential for financial year 2025 (FY25) to FY27 may be constrained by slower fresh fruit bunch (FFB) growth and higher palm kernel (PK) price premiums, said RHB Investment Bank Bhd. The research house has cut its earnings forecasts by three per cent for FY25 and FY26, and four per cent for FY27. It said the group's first-half 2025 results were broadly in line with its and market expectations. "FFB output should improve in the second half of 2025 (2H25) as we head into the third-quarter peak season, but this may be offset by moderating crude palm oil (CPO) average selling prices," it noted. RHB IB maintained its "Buy" call on Johor Plantations, raising the target price to RM1.50 from RM1.45. Meanwhile, Hong Leong Investment Bank Bhd (HLIB) said Johor Plantations' CPO production cost, excluding PK credit, was RM2,147 per tonne in the second quarter of 2025, bringing the first-half average to RM2,263 per tonne. "Management shared that CPO production cost will likely remain flattish for 2H25, bringing the full-year range to RM2,200 to 2,300 per tonne," it said. It added that the impact of mandatory Employees Provident Fund contributions for foreign workers, expected to take effect in October, is seen as minimal, at around RM1.5 million annually. The extension of the Sales and Service Tax is also expected to have little effect, aside from an estimated RM20 million increase in capital expenditure. HLIB added that the Integrated Sustainable Palm Oil Complex is on track for completion in FY26. Once operational, management expects it to contribute about RM150 million in revenue in FY26, rising to RM700 million in FY27.
The Star
3 days ago
- Business
- The Star
Johor Plantations sees stronger earnings for 2Q
The company said it remains prudently optimistic in navigating market dynamics. PETALING JAYA: Higher selling prices for both crude palm oil (CPO) and palm kernel (PK) has enabled Johor Plantations Group Bhd to see better earnings in its latest quarter. In a filing with Bursa Malaysia, the plantation company registered a higher revenue of RM398.2mil for the second quarter ended June 30, 2025 compared with RM360.9mil in the same quarter last year. Subsequently, net profit also rose to RM75.19mil for the quarter under review, higher than the RM49.74mil recorded in the second quarter in 2024. The company noted revenue for CPO sales increased 4.8% year-on-year (y-o-y) for the quarter under review to RM323.9mil with delivery volumes up 1.9% to 74,667 tonnes. 'PK sales saw revenue surge 46.1% y-o-y to RM73mil while outside crop purchase (OCP) recorded a 11.9% increase y-o-y in external crop purchases, reflecting the effectiveness of its strategy to boost OCP,' the company noted. According to Johor Plantations, for the first half of 2025, net profit increased 51% y-o-y to RM150.6mil while revenue grew 12.6% to RM738.7mil. It noted that while production volumes were lower y-o-y, higher CPO and PK prices boosted earnings, alongside stronger OCP that helped sustain throughput and strengthen profitability. Johor Plantations managing director Mohd Faris Adli Shukery said the strong performance was driven by disciplined efforts across its upstream segment and continued progress in expanding external crop sourcing. 'At the same time, we continue to enhance operational efficiency, optimise our inventory, and manage costs proactively, all guided by our steadfast commitment to sustainability, which remains at the heart of our long-term value creation,' he said. He added moving forward, the company is mindful of potential demand-supply imbalances in the CPO market, however, they are confident in their ability to navigate these conditions. 'Our focus remains on optimising price realisation, sustaining production growth, exercising rigorous cost control, increasing processing volume and advancing our downstream expansion,' he said. As the company moves into the second half of the year, it will expect seasonal production growth and remains prudently optimistic in navigating market dynamics. 'With this, the company is well-positioned to sustain its growth trajectory and deliver long-term shareholder value,' he said. The board declared a second interim dividend of 1.25 sen per share for the quarter, reflecting an earnings per share of 3.01 sen, rewarding its shareholders with a total dividend payout of RM31.25mil. Meanwhile, the company also announced that its chief financial officer (CFO) Aziah Ahmad will retire as of Sept 1, 2025. Aziah had been a vital member of the Kulim (Malaysia) Bhd and Johor Corp group since 2014, holding senior finance leadership roles She played a pivotal role in strengthening Johor Plantation's financial operations ahead of its initial public offering and in delivering the plantation industry's first sustainability-linked sukuk in 2024. She will be succeeded by Zain Azrai Zainal Abidin on the same date, who happens to be a certified public accountant with more than 27 years of experience. 'He joined the company in June as the deputy CFO and has been working together with Aziah to ensure a seamless leadership transition.'
The Star
4 days ago
- Business
- The Star
Johor Plantations posts 51% surge in 2Q net profit to RM75.19mil
KUALA LUMPUR: Bolstered by higher delivery volumes for crude palm oil (CPO) and palm kernel (PK), Johor Plantations Group Bhd posted a 51% higher bottomline for the second quarter ended June 30, 2025. During the quarter under review, the plantations firm said net profit jumped to RM75.19mil from RM49.74mil in the year-ago quarter, which lifted earnings per share to 3.01 sen from 2.44 sen previously. The group reported higher revenue of RM398.29mil, up from RM360.91mil in the comparative quarter. According to the group, its performance also benefited from stronger outside crop purchase (OCP), which helped to sustain throughput and strengthen profitability during the quarter. The board of directors declared a second interim dividend of 1.25 sen per share, going ex on Aug 29, 2025, and payable on Sept 22, 2025. Over the six-month period, Johor Plantations posted a net profit of RM151.12mil on revenue of RM738.72mil as compared to a net profit of RM99.71mil and revenue of RM655.82mil in 1HFY24. 'We are pleased to report another strong performance, driven by disciplined efforts across our upstream segment and continued progress in expanding external crop sourcing. "At the same time, we continue to enhance operational efficiency, optimise our inventory, and manage costs proactively, all guided by our steadfast commitment to sustainability, which remains at the heart of our long-term value creation," said managing director Mohd Faris Adli Shukery in a statement. Moving forward, he said the group remains mindful of potential demand-supply imbalances in the CPO market but remains confident of being able to navigate the conditions. "Our focus remains on optimising price realisation, sustaining production growth, exercising rigorous cost control, increasing processing volume and advancing our downstream expansion.' Johor Plantations also announced the appointment of Zain Azrai Zainal Abidin as chief financial officer (CFO) from Sept 1, 2025, following the retirement of current CFO Aziah Ahmad. According to the statement, Zain joined the group in June as deputy CFO and brings deep expertise in finance, strategy, treasury, investment management, stakeholder engagement and audit.
