Boustead Plantations Berhad (BPB) concluded the Financial Year 2022 (FY2022) on a high note by registering a record-breaking revenue of RM1.2 billion, an increase from RM1.1 billion gained in FY2021 and highest since its listing in 2014.
This also marked the first time BPB achieved a revenue of more than RM1 billion for two consecutive years.
In FY2022, the Group achieved a Profit Before Taxation and Zakat (PBT) of RM729 million, surpassing the corresponding period last year of RM345 million. This included the gains from the disposal of Kulai Young land, partial disposal of Bukit Mertajam land and Government land acquisition at Telok Sengat Estate, which amounted to RM459 million. Profit After Taxation and Zakat (PAT) rose by 143% to RM589 million.
During the period, crude palm oil (CPO) realised an average price of RM5,066 per metric tonne (MT), surpassing last year’s corresponding period of RM4,341 per MT. Palm kernel average price was also higher at RM3,156 per MT.
The Group also made a significant turnaround in the fourth quarter ended 31 December 2022, posting increasing results from the immediate preceding quarter.
Revenue increased by 10% to RM264 million while profit from operations, PBT and PAT posted improvements of more than 100%, rising to RM29 million, RM110 million and RM84 million respectively.
On the operational side, fresh fruit bunches (FFB) production increased to 251,715 MT in the current quarter from 227,335 MT recorded in the immediate preceding quarter, generating higher yield per MT of 3.8. Oil extraction rate and kernel extraction rate saw marginal improvements to 20.6% and 3.9% respectively.
During the year, higher collection from customers due to higher CPO price and proceeds received from the disposal of Kulai Young land had strengthened overall cash flows, which allowed the Group to fund its working capital internally and pare down borrowings.
As a result, the Group’s Debt-to-Equity ratio stood at 0.29 times, improved from 31 December 2021 position of 0.37 times. Likewise, the Group’s net current liabilities as at 31 December 2022 stood at RM200 million, a reduction of RM281 million from RM481 million as at 31 December 2021. Earnings per share grew to 26.58 sen from 10.77 sen registered in FY2021.
BPB Acting Chief Executive Officer, Fahmy Ismail said the Group is pleased with the positive performance shown in 2022 despite going against challenging forces including labour shortage, higher operating cost and unpredictable weather patterns.
Expecting a stable palm oil market after a volatile 2022, Fahmy said stock levels in Malaysia and Indonesia were forecasted to improve following the increase in mature areas, better weather conditions as well as improved labour supply.
“Capitalising on these conditions, the Group will continue to maximise productivity via various yield enhancement initiatives including the Plantations Performance Improvement Programmes, supported by other ongoing efforts to modernise our operations,” Fahmy said.
“As we remain resolute to the Reinventing Boustead Strategy and enhancing shareholder value, the Group commits to our reform initiatives in transforming BPB into a sustainable technology-based plantation company by ramping up mechanisation and digitalisation efforts, while steadfastly upholding the principles of environmental, social and governance in our operations,” Fahmy concluded.
In line with the Group’s commitment to delivering shareholder value, the Board of Directors declared a fourth interim single tier dividend of 3.3 sen per share for the year ending 31 December 2022. The dividend will be paid on 22 March 2023 to shareholders on the register as at 8 March 2023.
This put the total dividend declared to date at 14.45 sen, surpassing last year’s total dividend of 8.35 sen.
Commending BPB’s performance, Boustead Holdings Berhad (BHB) Group Chief Executive Officer Izaddeen Daud said he was confident that the positive outcome would create momentum for BPB to chart better prospects in 2023.
BPB is one of the most experienced and established upstream oil palm plantation companies in Malaysia. BHB, and together with Lembaga Tabung Angkatan Tentera, are the major shareholders of BPB.
