Far East sees better 1H25

PETALING JAYA: Far East Holdings Bhd is expecting crude palm oil (CPO) and kernel prices to remain stable throughout the financial year ending Dec 31, 2025 (FY25), barring any unforeseen events.

However, the group cautioned that fresh fruit bunch (FFB) production is anticipated to be softer compared with FY24, which may moderate overall financial performance relative to the previous year.

Additionally, weather disruptions are expected to continue to give challenges to the group’s performance.

Releasing its results for the second quarter ended June 30 (2Q25), Far East saw net profit sliding by nearly 3% amidst lower FFB production.

For 2Q25, the palm oil producer’s net profit fell by 2.7% year-on-year (y-o-y) to RM49.99mil or an earnings per share of 8.42 sen, mainly due to lower FFB production.

This was despite a higher revenue, which saw a 34% y-o-y increase to RM242.39mil, mainly due to higher FFB processed by 82,540 tonnes (55%).

For the six-month period ended June 30, 2025 (1H25), the group posted a 22.3% y-o-y uptick in its net profit to RM97.9mil, translating to an earnings per share of 16.49 sen.

Revenue for the period rose by 37% y-o-y to RM448.33mil.

Far East said the better performance in 1H25 was attributed to higher average CPO and palm kernel (PK) prices per tonne by 8% and 48%, respectively.

The average CPO price per tonne was RM4,339 (2024: RM4,019) and the average PK price per tonne was RM3,451 (2024: RM2,327).

Further, the group said the improved performance seen in 1H25 was because of a higher share of profit after tax of associates by RM14.72mil (55%) and higher FFB processed by 123,035 tonnes (47%).

The group has declared an interim single tier dividend of six sen per share in 2Q25.

The payment will be made on Sept 18, 2025 to the shareholders whose names appear in the record of depositors of the company at the close of business on Sept 3, 2025.