KUALA LUMPUR (August 26): IJM Plantations Bhd returned to the black in the first quarter, ending June 30, 2020 (1QFY21), with a net profit of RM82.12 million, primarily due to a net foreign exchange gain at RM91.74 million.
The group had reported a net loss of RM76.39 million a year earlier (4QFY20) and a net loss of RM4.78 million in the previous quarter (1QFY20).
Quarterly revenue of RM205.99 million increased from RM95.39 million in 4QFY20 and increased 54.8% compared to RM133.07 million in 1QFY20.
This was due to higher raw material prices and sales volume, IJM Plantations in an archive to the stock exchange.
The group added: “The overall economic performance of the operations was an improvement mainly due to the foreign exchange gains recorded on the foreign currency foreign currency loans resulting from the exchange rate movements in the rupee against the US dollar and the Japanese yen.”
IJM Plantations said that the production of fresh fruit in 1QFY21 was higher compared to 1QFY20, mainly due to the restoration of crop production in the Malaysian operations and because more planted areas reached maturity and moved into the primary age of the Indonesian operations.
Profit before tax from the Indonesian operations increased to RM88.91 million, from a loss before tax of RM7.78 million in 1QFY20 and a loss before tax of RM96.89 million in 4QFY20.
Regarding the outlook, IJM Plantations said that with the good start to the first quarter and the expectation of improved crop production and crude oil prices as well as stable currency environments, the group is cautiously optimistic about better financial results for FY21.
“The group could be exposed to pressure, mainly due to changes in weather patterns that disrupt crop production, uncertainty in commodity prices and volatility in exchange rates, especially that of the rupee against the US dollar and the Japanese yen,” it added.
IJM Plantations’ shares closed six late or 3.55% higher at RM1.75 today and valued the group at RM1.54 billion.
Edited by S Kanagaraju