KUALA LUMPUR (Nov 21): Kumpulan Fima Bhd (KFima) posted a 2.7% decline in net profit of RM15.84 million for its second financial quarter ended Sept 30, 2014 (2QFY15) from RM16.28 million a year ago.
Revenue for 2QFY14, however, rose 4.85% to RM129.13 million from RM123.16 million in 2QFY13.
For the six months period (6MFY15), net profit expanded 7.6% to RM33.13 million from RM30.79 million a year ago, while revenue increased 9.6% to RM258.51 million from RM235.97 million in 6MFY14.
In a filing with Bursa Malaysia today, the group attributed the improved revenue in 6MFY15 to higher revenue generated by all divisions.
"However, profit before tax (PBT) recorded a slight increase by RM0.48 million or 0.8% to RM63.56 million from RM63.08 due to lower PBT recorded by manufacturing division. The other divisions namely plantation, food and bulking registered higher PBT than last year," it said.
Looking forward, KFima expects revenue for the manufacturing division in the second half of FY15 to be lower due to cyclical demand in certain jobs, while performance for the plantation division will be very much dependent on global commodity prices.
"Based on the current prices of palm oil products supported with the average yield, the outlook for the plantation division continues to remain satisfactory," it said.
For the bulking division, KFima expects the operating environment to remain challenging with the anticipated variation in the Malaysia Derivatives Exchange's (MDEX) edible oil tender and transhipment businesses.
"The food division faces tough market conditions particularly in Papua New Guinea where the division's main operation is located, amidst increased competition and introduction of a minimum wage rate by the government effective July 3, 2014," it said.
"The division will continue to concentrate on productivity improvement, cost control and passing through additional costs to customers," it added.
KFima's shares gained 3 sen or 1.53% to close at RM1.99 today, giving it a market capitalisation of RM549 million.