KUALA LUMPUR (Aug 23): IJM Plantations Bhd's net profit for its first quarter ended June 30, 2017 (1QFY18) shrank 32.96% to RM16.9 million or 1.92 sen per share from RM25.21 million or 2.86 per share a year earlier on a net unrealised foreign exchange (forex) loss on dollar-denominated borrowings.

The group recorded an unrealised forex loss of RM800,000 compared to a gain of RM5.4 million in the previous year's corresponding quarter, it reported in an announcement to Bursa Malaysia today.

"In addition, the gain of RM700,000 on the crude palm oil pricing swaps [in 1QFY18] was significantly lower than the RM6.4 million recognised in 1QFY17," IJM Plantations said.

Meanwhile, revenue for the quarter was up 32.44% at RM184.59 million from RM139.38 million a year earlier as more crops were harvested from a larger matured area in Indonesia and fresh fruit bunches (FFB) production was higher, recovering after prolonged dry weather.

In spite of higher sales volume, Malaysian operations recorded slightly lower revenue due to lower commodity prices, IJM Plantations added.

Barring any volatility in palm produce prices and forex rates, the group said it expected profitability for the current financial year to be satisfactory on the back of higher crop production from the increasing young mature areas in Indonesia, as well as FFB production being sustained in Malaysia.

Shares in IJM Plantations, which last traded at RM3.01, were untraded today, leaving the group with a market capitalisation of RM2.69 billion.