KUALA LUMPUR (Aug 24): IJM Plantations Bhd’s net profit fell 26.86% year-on-year (y-o-y) to RM60.06 million in the first quarter ended June 30, 2021 (1QFY22) from RM82.12 million, dragged mainly by lower foreign exchange gains and higher operating expenses (opex).

IJM Plantations said Indonesia’s rupiah only recovered slightly against both the US dollars and the Japanese yen, compared to the strong recovery seen in 1QFY21. This lowered its net forex gains from its foreign currency denominated borrowings to RM3.8 million, from RM91.74 million in 1QFY21.

Opex, meanwhile, grew to RM190.09 million from RM181.72 million, its bourse filing showed. The drop in earnings came despite a 31.91% y-o-y rise in quarterly revenue to RM271.72 million, from RM205.99 million, amid higher commodity prices, even as the group's fresh fruit bunch (FFB) production was lower due to weather effects.

Compared with the immediate preceding quarter of 4QFY21, however, IJM Plantations' net profit was up 4.6% from RM57.42 million, thanks to higher commodity prices and the favourable currency movements. Revenue grew 10.28% from RM246.38 million.

The planter did not declare any dividend for the quarter under review.

On prospects, the group is optimistic of charting a favourable performance for FY22 — barring any adverse weather impact that could disrupt crop production and volatility in forex rates, in particular the rupiah versus the greenback and yen — based on market expectations that palm product prices would remain elevated. 

IJM Plantations shares closed unchanged at RM3.06 today, giving the group a market capitalisation of RM2.70 billion.