The agriculture and horticulture solutions provider / rubber plantation owner has concluded its 19th Annual General Meeting today.
“Natural rubber prices have generally been on uptrend, and this in turn, benefits Greenyield as we sell inputs to rubber plantations and we also own rubber estates. To note, our plantation inputs segment includes products such as our proprietary RRIMFLOW yield enhancement system, chemicals and fertilizers, and tools and equipment. Meanwhile, our household goods division, which primarily sells Artstone plant pots, sees demand from our key export markets, the United States and Europe, remaining robust as well.” Executive Director, Mr. Tham Kin On commented.
“Having said that, we are also cognizant of the headwinds faced, for instance, the rising raw material prices and sustained inflationary pressures in the US and Europe, which may limit our ability to pass on the cost increases to our customers.”
“On a positive note, the soft Ringgit is favorable to the Group given that approximately 90% of our revenue is derived from outside Malaysia.”
“Looking ahead, we believe the demand for commodities such as rubber will continue to rise and we want to capitalize on this by enhancing our presence in the upstream segment. The Group’s recently proposed acquisition of a 65%-stake in Greenyield Rubber Holdings (M) Ltd., which owns 15,313 hectares (Ha) of land in Papua New Guinea (PNG) comprising 6,450 Ha plantable area for rubber with 3,513 Ha planted, and 3,613 Ha plantable area for coconut, is in line with the Group’s aspiration. This is not only aligned with our long-term strategy to expand our plantation business but also provides us with ownership of freehold and leasehold lands in PNG, which are scarce in nature.”
The company owns and manages 1,200 Ha of rubber plantations in Kelantan that contributed revenue of RM1.4 million in its financial year ended 31 December 2021. The contribution is expected to improve as more rubber trees mature.
“Besides, the proposed acquisition also enables us to diversify our plantation portfolio to include coconut given the sizeable plantable area for coconut. We are also able to create synergies using our products and technology to increase yields. The proposed acquisition is currently pending issuance of a circular followed by an Extraordinary General Meeting (EGM) to be convened thereafter,” Mr. Tham concluded.
Greenyield recorded profit after tax (PAT) of RM5.4 million on the back of RM45.4 million revenue in FY2021. For the first quarter ended 31 March 2022, turnover increased 42.1% year-on-year to RM15.0 million, while PAT remained similar at
RM2.0 million.
