Boustead Plantation slips into the red

By TMR

Boustead Plantation Bhd slipped into the red in its second quarter ended June 30, 2018 (2Q18), as a result of the slump in palm product prices and lower production, particularly in the peninsular region.

It posted a net loss of RM22.23 million for the period as against a net profit of RM10.78 million in 2Q18. Revenue fell 16.36% year-on-year (YoY) to RM141.75 million.

“The current quarter’s loss was due to lower selling prices, 9% reduction in crops and higher expenditure, mainly for manuring,” it told Bursa Malaysia in a filing yesterday.

Boustead’s profit for the peninsular region fell 68% for the first six months of 2018 (1H18) to RM10.7 million from RM33 million a year ago, attributed to the slump in prices of palm products, lower production and increase in operating expenditure.

For the Sabah region, its segment incurred a loss of RM8.3 million for 1H18 compared to a profit of RM31.3 million a year ago.

“Although the fresh fruit bunches production of 204,729 metric tonne reflected an increase of 8%, the adverse impact of lower selling prices and higher operating expenditure led to the decline in profit,” it said.

The Sarawak region also incurred a loss of RM13.3 million compared to a profit of RM1.9 million in 1H17.

The company declared a second interim dividend of 2.5 sen to be paid on Sept 25, 2018. — TMR