KUALA LUMPUR (June 26): IJM Plantations Bhd has recorded its second consecutive loss-making financial year, with a net loss of RM63.42 million arising from total net foreign exchange (forex) losses of RM87.11 million.

For the previous financial year ended March 31, 2019 (FY19), IJM Plantations had posted a net loss of RM36.34 million.

In a filing with Bursa Malaysia today, IJM Plantations said revenue grew 17.16% to RM739.13 million in FY20, from RM630.9 million in FY19.

Despite the bigger loss, the group has proposed an interim dividend amounting to two sen per share, payable on Aug 18.

For the fourth quarter of FY20, IJM Plantations reported a net loss of RM76.39 million versus a net profit of RM13.52 million a year earlier, weighed down by a RM100.68 million net forex loss. In the year-ago fourth quarter, IJM Plantations had recognised a RM9.73 million forex gain.

“The overall financial performance of the group in the quarter was severely affected by the significant weakening of the rupiah against the US dollar and the Japanese yen,” IJM Plantations said.

Quarterly revenue, however, was 18.56% higher at RM195.39 million, from RM164.8 million last year, due to higher commodity prices.

On prospects, IJM Plantations said the group will continue to face cost pressures mainly from wage increases, the uncertainty of commodity prices and the volatility of forex rates, particularly that of the rupiah against the US dollar and the yen.

Coupled with the disruptive implications of the Covid-19 pandemic, the group expects a challenging financial year ahead.

Shares of IJM Plantations closed seven sen or 4.4% higher at RM1.66 today, valuing the counter at RM1.46 billion.