KUALA LUMPUR (May 24): Ta Ann Holdings Bhd suffered an 88.38% drop in net profit to RM4.23 million for the first quarter ended March 31, 2018 (1QFY18) from RM36.42 million a year earlier, mainly on lower sales volume of timber and palm oil products and lower palm oil price.

In a filing with Bursa Malaysia, Ta Ann said the sales volume of plywood products and export logs fell by 33% and 71% respectively during the quarter.

The volume for oil palm fresh fruits bunches (FFB) and crude palm oil (CPO) FFB and CPO volume, meanwhile, both dropped by 11%.

In addition, the average selling price for CPO and FFB fell by  19% and 26% respectively, the group said.

The group said its quarterly revenue fell 29.7% to RM214.86 million from RM305.57 million previously.

Ta Ann said that although the adverse weather condition had negatively impacted production, it is expecting better performance in both the timber and oil palm sectors for the rest of the year.

This is thanks to the dry weather and cyclical effect of the production trend in achieving better production yield.

“Barring unforeseen circumstances, the directors are confident of a good performance for 2018,” the group said.

Ta Ann’s share price fell four sen or 1.44% to RM2.74, with a market capitalization of RM1.23 billion.