KUALA LUMPUR: TH Plantations Bhd's net profit rose 13.6 per cent year-on-year (YoY) to RM13.04 million in the first quarter ended March 31, 2024 (Q1 2024) versus RM11.45 million in the same period last year, buoyed by higher sales volume of palm products.
Group revenue climbed 7.5 per cent to RM157.31 million in the quarter under review versus RM146.37 million a year ago.
TH Plantations said the better earnings in the first quarter were also contributed by the higher fresh fruit bunches (FFB) and crude palm oil (CPO) production.
The group's FFB and CPO production for the first quarter grew 14.8 per cent and 8.1 per cent respectively.
TH Plantations chief executive officer Mohamed Zainurin Mohamed Zain said the improved performance helped boost revenue despite lower palm product prices.
"These encouraging results indicated that the group's five-year strategic plan, Al Falah 22/22, is pointing in the right direction in improving operational efficiencies and fostering sustainable growth.
"Building on these encouraging results, the group will continue to strengthen efforts under Al-Falah's initiative by focusing on operational efficiencies, effective cost management, good agronomic practices, rehabilitation, replanting, and mechanisation programs to strive for better performances," he said in a statement.
Despite current global market uncertainties, the company expects palm oil prices to remain favourable in Q2 2024 due to tight supply, erratic weather, geopolitical tensions and festival demand, as well as the adverse market conditions affecting the spread between RBD Palm olein and soy oil.
Barring any unforeseen circumstances, TH Plantations expects a satisfactory financial performance for 2024 and is optimistic on the abilities of current strategies and initiatives to address ongoing issues and challenges.