KUALA LUMPUR (Aug 26): IJM Plantations Bhd returned to the black in the first quarter ended June 30, 2020 (1QFY21), posting a net profit of RM82.12 million, mainly due to net foreign exchange gains of RM91.74 million.
The group had reported a net loss of RM76.39 million a year earlier (4QFY20) and a net loss of RM4.78 million in the preceding quarter (1QFY20).
Quarterly revenue at RM205.99 million was up from RM95.39 million in 4QFY20, and up 54.8% compared with RM133.07 million in 1QFY20.
This was due to higher commodity prices and sales volume, IJM Plantations in a filing with the stock exchange.
The group added: "The overall financial performance of the operations was an improvement mainly due to the foreign exchange gains recorded on the foreign currency denominated borrowings arising from the exchange rate movements of the rupiah against the US dollar and the Japanese yen.”
IJM Plantations said fresh fruit bunch production in 1QFY21 was higher compared with 1QFY20, mainly due to the recovery of crop production in the Malaysian operations and because more planted areas attained maturity and moved into prime age in the Indonesian operations.
The profit before tax from the Indonesian operations surged to RM88.91 million, from a loss before tax of RM7.78 million in 1QFY20 and loss before tax of RM96.89 million in 4QFY20.
On prospects, IJM Plantations said that with the good start in the first quarter and the expectation of improved crop production and crude palm oil prices, as well as stable foreign exchange environment, the group is cautiously optimistic for better financial performance for FY21.
“The group could face pressures arising mainly from changes in the weather pattern disrupting crop production, the uncertainty of commodity prices and the volatility of the foreign exchange rates particularly that of the rupiah against the US dollar and the Japanese yen,” it added.
IJM Plantations’ shares closed six sen or 3.55% higher at RM1.75 today, valuing the group at RM1.54 billion.
Edited by S Kanagaraju