Johor Plantations sees stronger earnings for 2Q

PETALING JAYA: Higher selling prices for both crude palm oil (CPO) and palm kernel (PK) has enabled Johor Plantations Group Bhd to see better earnings in its latest quarter.

In a filing with Bursa Malaysia, the plantation company registered a higher revenue of RM398.2mil for the second quarter ended June 30, 2025 compared with RM360.9mil in the same quarter last year.

Subsequently, net profit also rose to RM75.19mil for the quarter under review, higher than the RM49.74mil recorded in the second quarter in 2024.

The company noted revenue for CPO sales increased 4.8% year-on-year (y-o-y) for the quarter under review to RM323.9mil with delivery volumes up 1.9% to 74,667 tonnes.

“PK sales saw revenue surge 46.1% y-o-y to RM73mil while outside crop purchase (OCP) recorded a 11.9% increase y-o-y in external crop purchases, reflecting the effectiveness of its strategy to boost OCP,” the company noted.

According to Johor Plantations, for the first half of 2025, net profit increased 51% y-o-y to RM150.6mil while revenue grew 12.6% to RM738.7mil.

It noted that while production volumes were lower y-o-y, higher CPO and PK prices boosted earnings, alongside stronger OCP that helped sustain throughput and strengthen profitability.

Johor Plantations managing director Mohd Faris Adli Shukery said the strong performance was driven by disciplined efforts across its upstream segment and continued progress in expanding external crop sourcing.

“At the same time, we continue to enhance operational efficiency, optimise our inventory, and manage costs proactively, all guided by our steadfast commitment to sustainability, which remains at the heart of our long-term value creation,” he said.

He added moving forward, the company is mindful of potential demand-supply imbalances in the CPO market, however, they are confident in their ability to navigate these conditions.

“Our focus remains on optimising price realisation, sustaining production growth, exercising rigorous cost control, increasing processing volume and advancing our downstream expansion,” he said.

As the company moves into the second half of the year, it will expect seasonal production growth and remains prudently optimistic in navigating market dynamics.

“With this, the company is well-positioned to sustain its growth trajectory and deliver long-term shareholder value,” he said.

The board declared a second interim dividend of 1.25 sen per share for the quarter, reflecting an earnings per share of 3.01 sen, rewarding its shareholders with a total dividend payout of RM31.25mil.

Meanwhile, the company also announced that its chief financial officer (CFO) Aziah Ahmad will retire as of Sept 1, 2025.

Aziah had been a vital member of the Kulim (Malaysia) Bhd and Johor Corp group since 2014, holding senior finance leadership roles

She played a pivotal role in strengthening Johor Plantation’s financial operations ahead of its initial public offering and in delivering the plantation industry’s first sustainability-linked sukuk in 2024.

She will be succeeded by Zain Azrai Zainal Abidin on the same date, who happens to be a certified public accountant with more than 27 years of experience.

“He joined the company in June as the deputy CFO and has been working together with Aziah to ensure a seamless leadership transition.”