PETALING JAYA: IOI Corp Bhd’s net profit for the fourth quarter (Q4) ended June 30 increased by over 50% year-on-year (y-o-y) to RM359.4mil, mainly due to stronger contribution from all business segments.
Revenue for the three-month period rose by almost 70% y-o-y to RM3.46bil as compared to RM2.04bil in the corresponding previous quarter.
IOI told the stock exchange yesterday that the profit of its plantation segment jumped significantly in the fourth quarter, driven by higher crude palm oil (CPO) and palm kernel (PK) prices realised, partly offset by lower fresh fruit bunch (FFB) production.
Average CPO price realised for Q4 of financial year 2021 (FY21) was RM3,648 per tonne, compared to RM2,370/MT in Q4 of FY20.
Meanwhile, the average PK price realised in the fourth quarter was RM2,656 per tonne, compared to RM1,349 per tonne in Q4 of FY20.
As for the resource-based manufacturing segment, the bottomline also emerged stronger year-on-year in the latest fourth quarter.
“The higher profit is due mainly to a higher share of results from our specialty fats associate firm Loders.
“The refining sub-segment reported a decrease in contribution with lower margins, this was however cushioned by higher contribution from the oleochemical sub-segment,” according to the group.
Earnings per share for Q4 of FY21 were 5.74 sen, in comparison to 3.8 sen a year earlier.
IOI announced a six sen dividend per share for the fourth quarter.
Cumulatively, for the entire FY21, net profit more than doubled to RM1.39bil from RM600.9mil in the corresponding financial year.
Meanwhile, revenue jumped by 44.2% y-o-y to RM11.25bil as compared to RM7.8bil a year earlier. IOI said both of its plantation and resource-based manufacturing segments recorded stronger bottomline in FY21.
Looking ahead, IOI expects a stronger financial performance in FY22, underpinned by the strong contribution from its plantation segment.
The group said the challenging operating environment will continue for the near term, thus indirectly lending support to the strong CPO price trend at least for the next few months.
“For our plantation segment, the FFB production is expected to be stable in the new financial year of FY22 as the higher production from young palm trees in our Indonesian plantations will offset the production loss from our accelerated replanting programme in Sabah.
“We have accelerated our mechanisation programme in various field operations to alleviate the workers shortage challenge in our estates. Overall, with the anticipated strong CPO price during the first half of FY22, we expect the plantation segment to continue to perform well in the new financial year,” it said.
As for its refinery and commodity marketing sub-segment, IOI expects a satisfactory performance in FY22, with the efficient cost structure and varied product portfolio in our Sandakan refinery complex.
Meanwhile, for the oleochemical sub-segment within the resource-based manufacturing segment, the stronger-than-anticipated palm feedstock price will moderate the product margin, it said.
“The new fatty acid and soap noodle plants which will come on stream in Q3 and Q4 of FY22 respectively are expected to contribute to the sub-segment’s overall sales volume and margin growth in the future, although the contribution to profit in FY22 will be minimal.”
“For the specialty fats sub-segment comprising our associate company, Bunge Loders Croklaan, better performance is expected for FY22 with the normalisation of the economy and social activities in Europe coupled with the strong economic performance in US and China,” IOI added.