By NUR HAZIQAH A MALEK / Graphic By ANIS SHAMSUL
IJM Corp posted a 220% year-on-year (YoY) jump in net profit to RM70.1 million for its second quarter ended Sept 30, 2019, on improved earnings from its property development, manufacturing and quarrying, plantation and infrastructure divisions.
Revenue for the period rose 20.2% YoY to RM1.57 billion. On a year-to-date basis, net profit increased 52.96% YoY to RM129.53 million as revenue grew 13.45% YoY to RM3.12 billion.
The company declared a single-tier first interim dividend of two sen per share which will be paid on Dec 27, 2019, to entitled stakeholders.
IJM expects its financial year performance to be satisfactory despite foreseeing its construction division to be affected by the subdued property market and reduced infrastructure spending by the government, while its plantation division continues to face cost pressure.
As concessions mature, the group’s toll and port operations continue to provide recurrent revenue streams, thus bolstering its infrastructure division.
Cost pressures saw its plantation group IJM Plantations Bhd recording an improved net loss of RM2.32 million against the previous net loss of RM28.3 million due to favourable foreign-exchange position and a recovery in fresh fruit bunch (FFB) production.
Its revenue increased 23.4% YoY to RM172.86 million on higher sales volume. For the cumulative period, IJM Plantation’s net loss narrowed to RM7.09 million from RM47.9 million on higher FFB production due to the crop recovery.
Its revenue, however, fell to RM305.93 million from RM323.23 million in the corresponding period last year as commodity prices weakened in Malaysia, while its Indonesian operations recorded higher revenue on higher sales volume.