Latest news with #RM28mil
The Star
27-05-2025
- Business
- The Star
Kretam confident of outlook after 1Q profit jumps 71%
PETALING JAYA: Kretam Holdings Bhd is confident about its prospects for 2025, underpinned by current palm oil (CPO) prices and its ongoing initiatives to enhance performance. The group said it continues to adapt by implementing strategic measures aimed at mitigating industry-related risks, emphasising prudent cost control and increasing yield and productivity through advanced technologies and innovative practices. For the first quarter ended March 31, 2025 (1Q25), Kretam's net profit soared 71.1% year-on-year to RM28mil, bringing earnings per share to 1.22 sen, despite revenue falling 5.1% to RM167.1mil. While a decline in fresh fruit bunch (FFB) production volume led to lower turnover, the improvement in net earnings was attributed to higher average selling prices (ASPs) of FFB, CPO and palm kernel (PK). The group said lower estate upkeep cost – due to to reduced spending on manuring, weeding and road maintenance as a result of heavy rainfall during the quarter – also contributed to the bottom line. Kretam added that better margins from palm methyl ester sales, driven by overall lower cost of sales and higher average selling prices, further boosted net profit. Compared to 4Q24, however, revenue decreased by 28% from RM233.3mil, while net profit dropped 63% from RM75.9mil. This was mainly due to higher sales volume and ASPs for CPO and PK in the previous quarter, a fair value gain on investment securities of RM 2.6mil compared to RM23.8mil in 4Q24, and dividend income of RM 3.9mil received in 4Q24. Kretam declared an interim dividend of 1.5 sen per share for 1Q25. The group expects CPO prices to remain volatile throughout the year, influenced by factors such as anticipated improvements in production in the upcoming quarters, as well as broader global issues driving uncertainty in equity and commodity markets. The planter is particularly concerned about the unpredictable nature of international trade policies, as well as geopolitical tensions between Russia and Ukraine.
The Star
22-05-2025
- Business
- The Star
Orgabio optimistic on instant beverage market growth
KUALA LUMPUR: Orgabio Holdings Bhd remains optimistic, supported by the instant beverage market's growth from US$61.64bil in 2023 to US$103.75bil by 2031, at a compound annual growth rate (CAGR) of 6.94%. 'Malaysia's premix market is also expected to grow from US$521.65mil in 2022 to US$835.85mil by 2029 (CAGR: 6.97%). Backed by this positive trajectory, the group will continue to pursue growth opportunities while managing costs prudently and strengthening its competitive positioning,' the instant beverage premix manufacturer said in a statement. In the third quarter ended March 31, Orgabio's net profit halved to RM1.09mil, or earnings per share of 0.44 sen, compared with RM2.12mil, or 0.85 sen, in the year-ago quarter. Revenue, however, climbed to RM28mil against RM22.4mil previously. For the nine months ended March 31, it posted a 9.4% increase in net profit to RM3.4mil, supported by a 44.3% rise in revenue to RM76.8mil. 'We are encouraged by the consistent growth in revenue, particularly from the domestic market. While profitability was impacted by temporary cost pressures and currency volatility, we remain focused on delivering sustainable performance and maintaining operational discipline,' chief executive officer and executive director Ean Yong Hien Voon said. 'With our newly completed factory commencing operations in April 2025, we are well-positioned to ramp up capacity progressively. This facility enhances our ability to serve a broader client base with a more diversified product portfolio and supports our entry into new markets.'
