Far East 2Q net profit marginally up despite lower revenue

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KUALA LUMPUR (Aug 9): Far East Holdings Bhd has posted a 5% increase in net profit to RM10.52 million for the second quarter ended June 30, against RM10.04 million a year ago, notwithstanding lower revenue.

Earnings per share stood at 7.44 sen compared with 7.1 sen per share in the corresponding quarter last year.

Quarterly revenue fell 4.9% to RM96.12 million from RM101.09 million in 2QFY17.

For the first half, the group posted an 8.5% decline in net profit to RM33.07 million from RM36.16 million in 1HFY17.

In a bourse filing, Far East attributed the smaller net profit to lower crude palm oil (CPO) and palm kernel (PK) selling prices, which on average fell 10% and 23% respectively, against the cumulative six months last year.

In addition, estate expenditure was also higher by RM8.34 million due to an increase in harvesting cost and general charges expenses.

Cumulative revenue improved 6.3% y-o-y to RM205.38 million from RM193.28 million, due to higher fresh fruit bunches (FFB) production. At the same time, more FFB was received and processed by the mill during the period.

Looking ahead, Far East expects a favourable result in view of sustainable CPO prices.

Far East closed 28 sen or 1.97% higher at RM14.48 for a market capitalisation of RM2.047 billion.