Boustead Plantation recorded an unaudited loss before taxation and zakat of RM2.1 million. The profit from operations of RM1.4 million dropped substantially as compared to RM133.1 million achieved in the corresponding quarter last year due to lower FFB production and lower palm product prices as well as higher manuring costs it said.
The Group recorded a revenue of RM240.3 million, a reduction of RM53.5 million from RM293.8 million in the corresponding quarter last year due to lower FFB production and palm product prices.
Its FFB production for the quarter of 227,335 MT was 14% lower than the production in the corresponding quarter last year of 263,276 MT, contributing a yield of 3.4 MT per Ha as compared with 3.8 MT per Ha in the corresponding quarter last year. Lower production was mainly attributable to lower crops in Sabah and Sarawak respectively as a result of a shortage of harvesters.
In addition, Boustead said its higher operating cost also contributed to current quarter losses. Manuring costs rose to RM21.2 million as compared to RM6.2 million in the corresponding quarter last year due to an increase in fertiliser prices. Furthermore, it also suffered a loss of RM11.9 million on FFB valuation in the current quarter as compared to the gain of RM10.1 million in the corresponding quarter last year due to the CPO price plummeting in the third quarter of 2022.
For the nine-month period of 2022, the Group achieved an unaudited pre-tax profit of RM619.1 million which surpassed the corresponding period last year of RM207.6 million. This includes a gain on disposal of Kulai Young land of RM364.1 million and gain on government land acquisition at Telok Sengat Estate of RM3.6 million.
Moving forward, the group’s profitability is dependent on the CPO price direction and crop production. Peninsular Malaysia and Sabah regions have shown some improvements in FFB yield this year as a result of continuous improvement through the implementation of Plantation Performance Improvement Programs.
