KUCHING: Subur Tiasa Holdings Bhd’s bottomline has received a major boost from increased sales price of crude palm oil (CPO) and higher logs sales volume.
In second quarter ended June 30, 2022 (Q22022), Subur Tiasa chalked up group pre-tax profit of RM29.2 million from RM16.9 million in Q12022 as revenue jumped to RM171.3 million from RM128.9 million. Earnings per share was 8.3 sen.
There is no comparison figure from a year ago as the company has changed its financial year end from July 31, 2021 to Dec 31, 2021.
In the current quarter under review, the oil palm segment contributed RM105.9 million or 62 per cent of group turnover, timber segment RM62.96 million and others segment RM2.6 million.
The oil palm segment recorded RM29.8 million in pre-tax profit with profit margin of 28 per cent, the company said in explanatory notes to its financials.
The timber segment registered pre-tax profit of RM0.9 million in Q22022.
Compared to Q12022 financial results, Subur Tiasa said in the current quarter, the oil palm segment revenue rose by 32 per cent to RM105.9 million (Q12022: RM80.2 million) while pre-tax profit jumped 36 per cent to RM29.8 million (RM21.9 million), mainly contributed by higher CPO price which surged to RM6,557 per tonne from RM6,058 per tonne (Q12022) while fresh fruit bunches (FFB) production volume climbed by 28 per cent.
For the timber segment, its revenue grew by 34 per cent to RM63 million as a result of higher logs sales volume. This helped the segment to achieve a turnaround with pre-tax profit of RM0.9 million from loss of RM3.7 million in Q12022.
The others segment recorded improved revenue of RM2.4 million (RM1.65 million) but widened its pre-tax loss to RM1.54 million (-RM1.32 million).
On a six-month basis in 2022, Subur Tiasa posted group net profit of RM26.7 million on revenue of RM300.1 million. The revenue was derived from oil palm segment (RM186.1 million), timber segment (RM110 million) and other segment (RM4.1 million).
The oil palm segment contributed RM51.7 million in pre-tax profit but the timber and others segment suffered pre-tax loss of RM2.78 million and RM2.86 million) respectively, resulting in group pre-tax loss of RM46 million in current financial period.
Commenting on prospects, Subur Tiasa said: “The group’s FFB production is expected to register higher growth on the back of peak crop season. CPO price is expected to remain solid at the current level underpinned by the ongoing labour shortage in Malaysia and the uncertainty arising from the war between Russia and Ukraine.
“The group is on track to deliver another improved performance as compared to last financial year with positive earnings expected from the coming quarter.
“However, as the global economic growth remains uncertain, the group will remain steadfast and continue to prioritise on cost-rationalisation initiatives while concurrently ensuring improvements in its business processes and strategies.”
Meanwhile, automotive battery manufacturer ABM Fujiya Bhd (AFujiya) has reported a five-fold increase in group net profit to RM2.61 million in Q22022 from RM494,000 in Q22021 in line with the sharp increase in revenue to RM25.84 million from RM18 million previously. Earnings per share improved to 1.45 sen from 0.27 sen.
The Q22022 financial results were much improvement from Q12022 when Afujiya incurred group pre-tax loss of RM1.96 million (Q22022: pre-tax profit of RM3.39 million).
The company attributed the improvement in performance to higher sales volume and revised selling prices of its products.
In 6m2022, the group registered net profit of RM614,000 (6m2021: RM69,000) and revenue of RM49.2 million (RM39.8 million).
On prospects going forward, AFujiya said the global economy remains to be influenced by the effect of the global trade and geopolitical tensions, the major slowdown of the economic momentum and relatively higher prices in certain commodities.
“The ongoing logistic issues arising from port congestion, shortage of vessels and containers leading to higher freight rates and supply chain disruptions continue to be a source of concern.
“However, the group will remain vigilant and is confident that through continuous improvement in the products and services, efficiency in production, expansion of customer base, both locally and internationally, the group will be able to weather the challenges ahead.”
