KUALA LUMPUR (Nov 23): Sime Darby Plantation Bhd's (SD Plantation) net profit for the financial quarter ended Sept 30, 2018 slumped to RM115 million from RM1.02 billion a year earlier.
In a filing with Bursa Malaysia, the group attributed the fall in earnings to lower average crude palm oil (CPO) and palm kernel realised prices.
It said revenue for the quarter fell to RM3.04 billion from RM3.54 billion previously, while earnings per share dropped to 1.7 sen from 15 sen previously.
In a separate statement, SD Plantation executive deputy chairman and managing director Tan Sri Mohd Bakke Salleh said the group was well into the half-way mark of the six-month financial period as SD Plantation moves towards Dec 31, 2018.
"The business environment remains challenging as the CPO price traded at a low of RM2,065 per metric ton on Sept 28, 2018.
"Nevertheless, we remain steadfast in our drive to improve operational efficiency," he said.
Mohd Bakke said the group has incorporated new breakthrough technologies and innovations into its operations in line with the aspirations of Industry 4.0.
He said this would mitigate the impact of the upcoming new rate of minimum wage as the group maintains prudent cost management.
"Fundamentally, our operations and finances remain strong.
"The affirmation by various rating agencies over the course of the past few months augurs well for our business as we move forward into the new financial year in January 2019," he said.