Sime Darby Plantation Berhad registered a net profit of RM1.2 billion in the third quarter of its financial year ending 31 December 2023 (3Q FY2023), a threefold increase from RM396 million recorded in 3Q FY2022. The quarter’s strong performance bolstered the Group’s net profits for the nine-month period ended 30 September 2023 (9M FY2023) to RM1.7 billion.
The Group’s upstream operations registered an impressive improvement in 3Q FY2023, led by the strong recovery of the Malaysian operations, which saw a 38% year-on-year (YoY) increase in fresh fruit bunch (FFB) production, due to having more harvesters and intensive rehabilitation efforts. The Malaysian production volume achieved in 3Q FY2023 was higher by 43% quarter-on-quarter (QoQ) and also represented 43% of the total Malaysian production for 9M FY2023.
This resulted in a 14% YoY increase in overall FFB production for the Group, which mitigated the impact of lower average realised crude palm oil (CPO) and palm kernel (PK) prices. CPO prices declined 12% YoY to an average of RM3,777 per metric tonne (MT), compared to RM4,277 per MT in the previous corresponding period, whilst average realised PK prices declined by 11% YoY to RM1,721 per MT from RM1,940 per MT in 3Q FY2022.
Sime Darby Oils (SDO), the Group’s downstream operations, recorded a lower profit before interest and tax (PBIT) at RM225 million in 3Q FY2023, a decline from RM337 million achieved in 3Q FY2022. The decline was due to lower margins and volume demands in SDO’s Asia Pacific operations, although this was partially mitigated by strong results in its
European operations
Moving forward, the Group is optimistic of achieving higher FFB production for the full year, largely driven by improvements in labour productivity and field conditions in its Malaysian operations.
The Group declared a special interim dividend of 5.70 sen per share for FY2023 on 27 October 2023.
