KUALA LUMPUR (Jan 31): Chin Teck Plantations Bhd expects to see a similar level of production of fresh fruit bunches (FFB) in its financial year ending Aug 31, 2018 (FY18).

“We expect production this year to be flat due to the age profile of our trees, of which more than 30% are over 16 years old,” Chin Teck executive chairman Goh Wei Lei told reporters after the group’s annual general meeting today.

Despite a “big gap” between its existing matured trees and new planting, Goh said the group has no plans for any major replanting schemes this year and so, would stick to its average replanting rate of 4% to 6% per year.

Separately, the group is confident it will be able to see contribution going forward from its joint ventures in Sumatera, Indonesia, whose contributions had been affected due to unrest in surrounding villages.

“We are fairly optimistic that we can regain our land bank there,” Goh said.

Yesterday, the group reported a drop in net profit by 13.62% to RM13.59 million for its first quarter ended Nov 30, 2017 (1QFY18), led by foreign exchange translation losses and losses from its joint venture.

The costs incurred had been due to pending normal operations in Sumatera, Goh said.

Meanwhile, quarterly revenue increased a marginal 0.11% to RM42.51 million, although the average selling prices of FFB, crude palm oil & palm kernel were lower, as sales volumes of FFB and palm kernel were higher.