IOI Corporation recorded revenue of RM3.73 billion for Q4 FY2022 versus RM3.49 billion the group recorded in the same quarter in 2021. Profit before taxation also increased to RM658.4 million as compared to RM473.7 million reported for Q4 FY2021.
Excluding the non-operating and one-off items as tabulated below, the underlying PBT of RM675.8 million for Q4 FY2022 was 46% higher than the underlying PBT of RM461.5 million for Q4 FY2021, due mainly to higher contribution from all segments:
The plantation segment profit for Q4 FY2022 of RM502.7 million was 23% higher than the profit for Q4 FY2021 of RM409.8 million due mainly to a higher share of associate results from Bumitama Agri Ltd (“BAL”) and higher CPO and PK prices realised, partly offset by lower FFB production. Average CPO and PK prices realised for Q4 FY2022 were RM5,260/MT (Q4 FY2021 – RM3,648/MT) and RM3,850/MT (Q4 FY2021 –RM2,656/MT) respectively.
The resource-based manufacturing segment profit for Q4 FY2022 is RM292.6 million as compared to RM165.0 million for Q4 FY2021. Excluding the fair value gain on derivative financial instruments of RM103.6 million (Q4 FY2021 – RM71.4 million), the resource-based manufacturing segment reported an underlying profit of RM189.0 million for Q4 FY2022 was 102% higher than the underlying profit of RM93.6 million for Q4 FY2021. The higher profit was due mainly to higher margins from oleochemical and refining sub-segments, partly offset by lower sales volume from oleochemical and refining sub-segments
For FY2023, the group expects all segments to face some headwinds from uncertainties, the plantation segment’s financial performance is expected to decline due to the drop in CPO price from the historically high levels during FY2022 and the elevated cost of inputs such as fuel and fertiliser. Nevertheless, IOI anticipates the CPO price to be significantly higher than its historical average, and therefore the financial performance of its plantation segment is expected to be satisfactory.
Overall, the Group expects its financial performance for FY2023 to be lower than for FY2022 but remains healthy.
