PETALING JAYA: Teck Guan Perdana Bhd says the challenging environment facing the palm products industry will persist on the back of volatile commodity prices and uncertainties in the global economy.
The Tawau, Sabah-based agri group said unpredictable weather patterns and the long unresolved labour shortage problem will also further affect crop yield, which would serve to aggravate palm oil prices.
Releasing its results for the third financial quarter ended Oct 31 (3Q23), the oil palm and cocoa group saw its net profit plunge 83.8% year-on-year (y-o-y) to RM3.64mil as revenue fell by a third to RM91.3mil.
In a filing with Bursa Malaysia yesterday, Teck Guan attributed the cloudy financial performance for the period to the decrease in selling price as well as a reduction in operating margins.
Cumulatively, for the nine months ended Oct 31, net earnings dived 76% y-o-y to RM8.3mil as turnover was halved to RM212.9mil on the aforementioned reasons.
The silver lining was found when comparing with the preceding quarter ended July 31, as net profit increased significantly by 40% quarter-on-quarter from RM2.6mil, while revenue surged 51% from RM14.8mil, as Teck Guan pointed to an increase in sales volume in the quarter under review for the improved performance.
The cocoa and palm oil producer nevertheless is cautiously optimistic of the long-term prospects of the palm-based industry and will continue to focus on enhancing productivity and optimising operating cost efficiency to achieve sustainable growth.
Source: The Star