KUALA LUMPUR (Aug 29): Felda Global Ventures Holdings Bhd's second quarter net profit rose 35% to RM62.21 million from a year earlier, mainly on lower minority interest.

In a statement to Bursa Malaysia today, oil palm plantation group Felda Global said its RM62.21 million net profit in the second quarter ended June 30, 2016 (2QFY16) rose from RM46.09 million. Revenue fell to RM4.14 billion from RM4.19 billion.

According to the group's income statement, minority interest dropped to RM2.44 million from RM56.86 million. Profit before zakat and tax fell to RM108.16 million from RM190.55 million.

Profit after zakat and tax before minority interest declined to RM64.65 million from RM102.95 million.

Net loss for the six-month period (1HFY16) stood at RM3.33 million versus a net profit of RM49.66 million a year earlier. Revenue rose to RM7.9 billion from RM6.9 billion.

"The group posted a lower profit before taxation of RM38.18 million in 2016 compared to RM264.04 million registered last year largely due to lower CPO (crude palm oil) production and higher raw sugar costs," Felda Global said.

Looking ahead, Felda Global said it is committed to its oil palm replanting and cost rationalisation as the group contends with the impact from Malaysia's minimum wage policy.

"As for the palm industry, direction of CPO prices moving forward will be determined by the predicted stronger fresh fruit bunches output in the coming months due to seasonal trend, the supply of global edible oil especially soy bean oil, crude oil prices, ringgit currency movement versus US dollar and also implementation of the biodiesel mandate," the company said.

At 12:30pm, Felda Global shares rose two sen or 0.9% to settle at RM2.16 for a market value of RM7.84 billion. The stock saw 1.2 million shares traded.