TSH’s net profit plunged 83% to RM4.1m

by TMR

TSH Resources Bhd’s net profit plunged 83% year-on-year (YoY) to RM4.1 million in its second quarter ended June 30, 2018 (2Q18) due to lower crude palm oil price (CPO) and foreign exchange loss.

Revenue dropped 10% YoY to RM232.9 million due to the lower CPO price despite its significantly higher fresh fruit bunches (FFB) production. In an exchange filing yesterday, TSH noted its palm product segment recorded a lower revenue of RM200 million in 2Q18, as compared to RM229.4 million a year ago. Its operational profit lowered to RM38.7 million from RM42.8 million YoY for the period.

Moving forward, TSH expects its FFB production for the current year to further improve following a better age profile with more planted areas coming into maturity. “We remain optimistic on the long term prospect of the palm oil industry due to the higher per capital income, many health qualities of palm oil and population growth, which will drive greater demand. Palm products segment which accounts for more than 85% of the revenue and profit for the group will remain the core contributor to the Group profit,” it filing stated.