Johor Plantations 3Q net profit surges 38%

PETALING JAYA: Johor Plantations Group Bhd expects crude palm oil (CPO) prices to be supported at RM4,000 per tonne heading into 2026, underpinned by the incoming monsoon rainfall, Indonesia increasing its biodiesel blend from B40 to B50, and festive buying in the first quarter of 2026 for Chinese New Year and Hari Raya Aidilfitri.

Nonetheless, Johor Plantations said while the price outlook appears favourable, industry players should remain wary of slower global demand and geopolitical tensions, which may introduce volatility.

For the third quarter ended Sept 30, 2025 (3Q25), the group’s net profit rose 38% year-on-year (y-o-y) to RM106mil, or earning per share of 4.24 sen, supported by improved market demand and cost management.

Revenue was up by 23% y-o-y to RM496.2mil, mainly due to higher sales of the group’s CPO and palm kernel (PK).

In a filing with Bursa Malaysia, the group said revenue from CPO sales increased 20.8% y-o-y to RM409.98mil for 3Q25, compared with RM339.46mil in 3Q24, due to higher selling prices and greater delivery volumes.

Revenue from PK sales also rose 36% y-o-y to RM83.53mil for 3Q25, compared with RM61.42mil in 3Q24, driven by higher PK prices and greater delivery volumes.

The group said performance for the quarter was primarily supported by stronger contribution from its upstream segment.

Johor Plantations noted that the upstream segment’s growth was mainly driven by its identity preserved mills.

Revenue from the upstream segment rose 12.5% y-o-y to RM375.68mil for 3Q25, compared with RM333.88mil in 3Q24.

For the nine-month period ended Sept 30, 2025 (9M25), the group’s net profit increased 45% y-o-y to RM257.2mil, or earnings per share of 10.29 sen, while revenue grew 17% y-o-y to RM1.2bil.

Managing director Mohd Faris Adli Shukery said stronger external crop contributions helped offset a slight dip in 9M25 production compared with last year.

“With improving yields, firm demand, and continued optimisation across our operations, we remain confident of delivering a stronger 2025.

“Our 3Q25 performance underscores Johor Plantations’ solid fundamentals and steady progress in delivering our long-term strategy.

“The improvement across key segments, alongside the on-track development of its integrated sustainable palm oil complex in Sedili, reflects the strength of our integrated model and readiness for the next phase of sustainable growth,” he said in a statement yesterday.

Johor Plantations has declared a single-tier interim dividend of 1.75 sen per share for 3Q25, payable on Dec 23, 2025, with an ex-date of Dec 4, 2025.