IOI Corporation Berhad announced its quarter 4 result with profit before tax coming in at RM93.1 million as compared to RM658.4 million reported for Q4 FY2022. Excluding the non-operating and one-off items as tabulated below, the underlying PBT of RM249.6 million for Q4 FY2023 was 63% lower than the underlying PBT of RM675.8 million for Q4 FY2022, due mainly to lower contribution from all segments. Profit for the period dropped significantly from RM550 million to RM40 million.
The plantation segment profit for Q4 FY2023 of RM250.1 million was 50% lower than the profit for Q4 FY2022 of RM502.7 million due mainly to lower CPO and PK prices realised and higher cost of production. Average CPO and PK prices realised for Q4 FY2023 were RM3,906/MT (Q4 FY2022 – RM5,260/MT) and RM2,099/MT (Q4 FY2022 – RM3,850/MT). The lower segment profit reported was also due mainly to lower share of associates results of RM76.9 million (Q4 FY2022 – RM126.9 million).
Resource-based Manufacturing
The resource-based manufacturing segment profit for Q4 FY2023 was RM47.4 million as compared to RM292.6 million for Q4 FY2022. Excluding the fair value gain on derivative financial instruments of RM12.6 million (Q4 FY2022 – RM103.6 million), the resource-based manufacturing segment reported an underlying profit of RM34.8 million for Q4 FY2023 was 82% lower than the underlying profit of RM189.0 million for Q4 FY2022. The lower profit was due mainly to lower margins from oleochemical and refining sub-segments
For FY2023, the Group reported a PBT of RM1.52 billion as compared to RM2.35 billion reported for FY2022. Excluding the non-operating and one-off items as tabulated below, the underlying PBT of RM1.76 billion for FY2023 was 31% lower than the underlying PBT of RM2.54 billion for FY2022, due mainly to lower contribution from the plantation segment, mitigated by higher contribution from the resourced based manufacturing segment. As for profit for the full year, IOI recorded RM1.13 billion for 2023 compared to RM1.76 billion in 2022.
