Latest news with #UnitedPlantations
The Star
21-07-2025
- Business
- The Star
United Plantations focused on higher yields
PETALING JAYA: United Plantations Bhd is working towards an improvement of its palm oil yields and productivity. The company said in its latest quarterly report that it has embarked on mechanisation initiatives and replanting of older, less productive oil palm stands with its latest in-house high yielding planting breeds and materials. This is an important initiative amid various industry challenges that the sector is up against, it said. 'The tireless efforts by management to support high yields are viewed as essential in maintaining competitiveness amidst rising labour, energy and input costs. 'Looking ahead, we remain mindful of the challenges that may arise in the remaining part of the year,' the company said. It still anticipates to deliver a satisfactory set of results for 2025. Apart from this, United Plantations said the weather will play a key role in determining the direction of the palm oil sector – as the peak production months of July to September approaches. 'With export volumes showing signs of slowing, there is a risk that rising output could lead to a buildup of stocks and renewed pressure on prices,' it said. Prices will also be influenced by the global trading environment in the midst of the trade war and focus on tariff barriers, it said. While Indonesia's ramp-up in biodiesel production is helping to support palm oil prices, concerns persist regarding the pace and effectiveness of the B40 Biodiesel Mandate, as logistical and economic challenges may hinder its full implementation, it noted. In its second quarter ended June 30 of the financial year 2025 (FY25), United Plantations' net profit rose by 34.1% year-on-year (y-o-y) to RM249.38mil. Its revenues rose by 16.9% y-o-y to RM638.42mil for the latest quarter driven by the plantation and refinery segments. Earnings per share rose by 34% y-o-y to 40.08 sen. Commenting further, the company said revenues for its plantation segment had risen on higher production and prices for crude palm oil (CPO) and palm kernel (PK). 'CPO and PK production increased by 22.2% and 23.9% respectively. 'PK average selling price was higher marginally by 1.2% whereas CPO average selling price was lower by 3.3%,' it said. Plantations segment profits were also positively influenced by lower manuring costs, it said. Meanwhile, it said profits in the refinery segment had seen a significant improvement on higher palm oil sales volumes and reversal of hedging losses experienced during the preceding quarter. The company said its refinery segment's pre-tax profit includes the equity-accounted share of results from its joint venture, Unifuji Sdn Bhd. The joint venture recorded a profit before tax of RM24.6mil and contributed a share of net profit of RM10.9mil in the current quarter to the group. Unifuji had seen an improvement in sales volumes, better margins and stronger foreign-exchange hedging gains in the current quarter, it said.
New Straits Times
21-07-2025
- Business
- New Straits Times
United Plantations 2Q net profit rises 34.1pct to RM249.38mil
KUALA LUMPUR: United Plantations Bhd's net profit rose 34.1 per cent to RM249.38 million for the second quarter (2Q) ended June 30, 2025, from RM185.94 million in the same period last year. Revenue also increased by 16.9 per cent to RM638.42 million from RM546.08 million previously, the crude palm oil (CPO) and coconut producer said in a filing with Bursa Malaysia. For the six months ended June 30, 2025, United Plantations recorded a higher net profit of RM412.64 million compared with RM318.81 million, while revenue improved by 13.0 per cent to RM1.16 billion against RM1.02 billion previously. "Higher CPO and palm kernel (PK) production, coupled with higher prices, have increased the group's revenue," it said. Furthermore, the group's net interest income of RM10.2 million in the first half-year was 21.5 per cent lower than the RM13.0 million recorded in the previous year's corresponding period as a result of lower deposits. United Plantations said CPO and PK production increased by 13.8 per cent and 20.5 per cent , respectively. The average selling price of CPO rose 5.6 per cent to RM4,361 per metric tonne while that of PK jumped 46.5 per cent to RM3,312 metric tonne. Meanwhile, CPO's cost of production was 5.1 per cent lower at RM1,268 per metric tonne while PK's cost of production was down 7.6 per cent at RM329 metric tonne compared with the first six months of last year. Looking ahead, United Plantations said weather developments will continue to be important to monitor, especially with the approach of the peak production months of July to September. With export volumes showing signs of slowing, there is a risk that rising output could lead to a buildup of stocks and renewed pressure on prices, it said. "However, based on the performance to date, a stable labour situation and the company's strong commitment to securing its budgeted crop, the board of directors expects that the results for 2025 will be satisfactory," it added.
The Star
21-07-2025
- Business
- The Star
United Plantations 2Q net profit rises 34.1% to RM249.4mil
KUALA LUMPUR: United Plantations Bhd 's net profit rose 34.1 per cent to RM249.38 million for the second quarter (2Q) ended June 30, 2025, from RM185.94 million in the same period last year. Revenue also increased by 16.9 per cent to RM638.42 million from RM546.08 million previously, the crude palm oil (CPO) and coconut producer said in a filing with Bursa Malaysia. For the six months ended June 30, 2025, United Plantations recorded a higher net profit of RM412.64 million compared with RM318.81 million, while revenue improved by 13.0 per cent to RM1.16 billion against RM1.02 billion previously. "Higher CPO and palm kernel (PK) production, coupled with higher prices, have increased the group's revenue,' it said. Furthermore, the group's net interest income of RM10.2 million in the first half-year was 21.5 per cent lower than the RM13.0 million recorded in the previous year's corresponding period as a result of lower deposits. United Plantations said CPO and PK production increased by 13.8 per cent and 20.5 per cent , respectively. The average selling price of CPO rose 5.6 per cent to RM4,361 per metric tonne while that of PK jumped 46.5 per cent to RM3,312 metric tonne. Meanwhile, CPO's cost of production was 5.1 per cent lower at RM1,268 per metric tonne while PK's cost of production was down 7.6 per cent at RM329 metric tonne compared with the first six months of last year. Looking ahead, United Plantations said weather developments will continue to be important to monitor, especially with the approach of the peak production months of July to September. With export volumes showing signs of slowing, there is a risk that rising output could lead to a buildup of stocks and renewed pressure on prices, it said. "However, based on the performance to date, a stable labour situation and the company's strong commitment to securing its budgeted crop, the board of directors expects that the results for 2025 will be satisfactory,' it added. - Bernama
The Star
17-06-2025
- Business
- The Star
Bursa Malaysia slips amid cautious sentiment over Middle East tensions
KUALA LUMPUR: Market sentiment turned cautious on Tuesday as escalating tensions in the Middle East weighed on investor confidence, leading to a broadly weaker performance on Bursa Malaysia. The FBM KLCI fell 8.35 points, or 0.55%, to 1,511.64, recovering from an intraday low of 1,510.92. Across the broader market, decliners outnumbered advancers 538 to 353, with 3.03 billion shares worth RM1.93bil transacted. Among the losers, Nestle tumbled RM1.02 to RM71.70, United Plantations slid 32 sen to RM21.84, Heineken lost 32 sen to RM26.88 and Carlsberg declined 28 sen to RM18.98. Meanwhile, the top gainer was Westports, which added 27 sen to RM5.30. PETRONAS Dagangan added 16 sen to RM21.20, KESM gained 16 sen to RM2.95 and PETRONAS Gas climbed 14 sen to RM18.10. Stock market data showed that foreign investors were net sellers of Malaysian equities on Monday, with a total outflow of RM130mil. Local institutions and retail investors were net buyers, picking up RM85mil and RM45mil worth of equities, respectively. On the forex market, the ringgit slipped 0.08% against the US dollar to 4.2443. However, it strengthened against several other major currencies — rising 0.19% against the British pound to 5.7525, gaining 0.11% against the Singapore dollar at 3.3097, and climbing 0.2% against the euro to 4.9032. On the external front, MSCI's Asia ex-Japan stock index inched up by 0.02%. Japan's Nikkei 225 rose 0.59%, while South Korea's Kospi edged up 0.12%. In contrast, Hong Kong's Hang Seng Index slipped 0.34%. On the mainland, China's CSI 300 Index fell 0.09%, and the Shanghai Composite Index eased 0.04%.
Yahoo
15-05-2025
- Business
- Yahoo
Why We Like The Returns At United Plantations Berhad (KLSE:UTDPLT)
If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an eye out for. In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. Speaking of which, we noticed some great changes in United Plantations Berhad's (KLSE:UTDPLT) returns on capital, so let's have a look. Our free stock report includes 1 warning sign investors should be aware of before investing in United Plantations Berhad. Read for free now. If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. Analysts use this formula to calculate it for United Plantations Berhad: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.29 = RM936m ÷ (RM3.4b - RM195m) (Based on the trailing twelve months to March 2025). Therefore, United Plantations Berhad has an ROCE of 29%. In absolute terms that's a great return and it's even better than the Food industry average of 9.1%. See our latest analysis for United Plantations Berhad Above you can see how the current ROCE for United Plantations Berhad compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like, you can check out the forecasts from the analysts covering United Plantations Berhad for free. United Plantations Berhad is showing promise given that its ROCE is trending up and to the right. More specifically, while the company has kept capital employed relatively flat over the last five years, the ROCE has climbed 127% in that same time. So it's likely that the business is now reaping the full benefits of its past investments, since the capital employed hasn't changed considerably. The company is doing well in that sense, and it's worth investigating what the management team has planned for long term growth prospects. As discussed above, United Plantations Berhad appears to be getting more proficient at generating returns since capital employed has remained flat but earnings (before interest and tax) are up. Since the stock has returned a staggering 260% to shareholders over the last five years, it looks like investors are recognizing these changes. So given the stock has proven it has promising trends, it's worth researching the company further to see if these trends are likely to persist. If you want to continue researching United Plantations Berhad, you might be interested to know about the 1 warning sign that our analysis has discovered. If you'd like to see other companies earning high returns, check out our free list of companies earning high returns with solid balance sheets here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
