IOI Corp posts RM411.2m net profit for 3Q22

The higher profit is attributable to the higher contribution from plantation segment

by S BIRRUNTHA / Pic by TMR

IOI Corp Bhd registered a higher net profit of RM411.2 million in the third quarter ended March 31, 2022 (3Q22), from RM401.3 million a year ago, underpinned by higher contribution from plantation segment, partly offset by lower contribution from resource-based manufacturing segment.

Quarterly revenue climbed 43.4% to RM4.10 billion from RM2.86 billion in the same period a year ago, according to its filing to Bursa Malaysia today.

As a result, the group’s earnings per share rose 6.62 sen from 6.40 sen in 3Q21.

For the cumulative nine-month period ended March 31, 2022 (9MFY22), IOI Corp’s net profit increased to RM1.18 billion against RM1.03 billion, while revenue rose by 51.99% to RM11.84 billion from RM7.79 billion reported in the same period a year ago.

The total cash dividend declared to date for the current financial period is a single tier dividend of six sen per ordinary share against 4.5 sen on March 31, 2021.

The group’s plantation segment profit for 3Q22 of RM518.5 million was 179% higher than the profit for 3Q21 of RM185.9 million.

This was mainly due to higher crude palm oil (CPO) and palm kernel prices realised, as well as higher fresh fruit bunch production and higher share of associate results from Bumitama Agri Ltd.

Its resource-based manufacturing segment profit for 3Q22 was RM45.8 million compared to RM442.2 million for 3Q21.

On prospects, IOI Corp expects its financial performance for 4Q22 to be good on the back of strong performance from the plantation segment and the oleochemical sub-segment.

“CPO price spiked up since early March following the disruption in supply of sunflower oil arising from the war in Ukraine and several palm oil export restriction policies announced by the Indonesian government.  

“We foresee CPO price to remain strong in the near term due to these factors as well as the severe labour shortage in Malaysia continuing to curb the supply of CPO,” it noted.

The group also said that for its plantation segment, CPO production is expected to increase in 4Q22 in line with the seasonal trend.  

As such, with the anticipated strong CPO price, the group expects the plantation segment to perform well in 4Q22.

Shares of IOI Corp closed one sen or 0.23% higher at RM4.40 today, giving it a market capitalisation of RM27.65 billion.