KUALA LUMPUR (Aug 28): IJM Plantations Bhd, whose share price has been hovering at a 10-year trough, slipped into the red again for the first financial quarter ended June 30 (1QFY20), no thanks to soft crude palm oil (CPO) prices and lower sales volume.

However, the plantation group’s net loss narrowed to RM4.77 million in 1QFY20 compared with RM19.57 million a year ago. Quarterly revenue came in lower at RM133.06 million against RM183.14 million in the previous corresponding quarter. Loss per share shrank to 0.54 sen in the quarter under review compared with 2.22 sen a year ago, according to the group’s filing with Bursa Malaysia this evening.

IJM Plantations said operations at home recorded lower revenue mainly due to lower sales volume. Fresh Fruit Bunch (FFB) production was lower because of the change in cropping pattern. Lower EBITDA and profit before taxation were recorded as a result.

Over in Indonesia, the operations there recorded lower revenue mainly due to lower sales volume and a marginal increase in FFB production. “Compounded by the lower net foreign exchange gains on the US dollar and Japanese yen-denominated borrowings during the quarter, the overall financial performance of the operations was lower,” the group explained.

Moving forward, IJM Plantations expects better crop production in Malaysia and Indonesia.

But, it pointed out the continuous cost pressures it is facing arising mainly from wage increases and the volatility of the foreign exchange rates particularly that of the Indonesian rupiah against the US dollar and Japanese yen.

“As a result of these factors and given the prevailing low commodity prices, the group expects a challenging financial year,” it said.

IJM Plantations’ share price closed at RM1.43 today giving it a market capitalistation of RM1.25 billion.