PETALING JAYA: Ta Ann Holdings Bhd’s net profit rose by more than two times in its third quarter ended Sept 30, 2021 (Q3) boosted by higher product prices such as crude palm oil (CPO).

       Its net profit for Q3 rose to RM103.3mil from RM42.8mil in the same quarter a year ago while revenue rose by 37.8% to RM486.9mil for the quarter under review.

       Ta Ann declared a second interim dividend of 20 sen per share for the financial year (FY) ending Dec 31, 2021.

       It will be payable on Jan 24, 2022 to depositors whose names appear in the record of depositors on Jan 5, 2022.

       Basic earnings per share for the quarter rose to 23.45 sen from 9.71 sen in the same quarter a year ago.

       The company, which is a timber and oil palm plantation firm, said it is expecting a record profit for FY21 barring any unforeseen circumstances.

       Ta Ann logs

       It said in the notes to its financial statements that the quarter had been boosted by the higher average selling prices of CPO, fresh fruit bunch (FFB), plywood products and export logs in the quarter: they rose by 62%, 68%, 21% and 33% respectively.

       “We recognised a gain of RM26.09mil from the changes in the fair value of the biological assets during the current quarter under review as compared to a gain of RM1.64mil in the preceding corresponding quarter,” it said.

       In the year-to-date period, the group said it has recognised a gain from the changes in the fair value of the biological assets amounting to RM46.80mil during the current period under review as compared to a gain of RM1.99mil in the preceding corresponding period.

       Ta Ann also explained that its performance in Q3 had been positive as it was mainly attributed to favourable commodities prices due to the global shortage of raw materials including food items, mineral resources as well as computer chips currently due to the interruptions of supply chains caused by the Covid-19 pandemic.

       “The last quarter of 2021 should see stability in CPO, FFB and the group’s export of timber products on the back of a gradual opening up of major economies,” it said.

       Meanwhile, it said that the easing of government policy on the movement control order starting from mid-October is expected to help improve its manpower in both its estates and mill operations.

       “This will potentially lead to growth in FFB and CPO production,” the company pointed out.