IOI Corp 2Q Net Profit Jumps 39% to RM494.7m, Declares Six Sen Dividend
23/02/2022The Edge Markets

(File pic by IOI Corporation).

KUALA LUMPUR (Feb 23): IOI Corporation Bhd saw its net profit in the second quarter ended Dec 31, 2021 (2QFY22) jump 39.08% to RM494.7 million from RM355.7 million reported in the same period the prior year, underpinned by higher contribution across its plantation and resource-based manufacturing segments.

As a result, earnings per share rose 7.95 sen from 5.68 sen.

In a Bursa Malaysia filing on Wednesday (Feb 23), the group said its quarterly revenue surged by 67.53% to RM4.11 billion from RM2.45 billion, fuelled by higher revenue reported by its plantation segment amid an increase in crude palm oil (CPO) prices.

Meanwhile, the group has declared its first interim dividend of six sen per share, to be paid on March 25.

For its first six months ended Dec 31 (1HFY22), the group’s net profit increased by 21.89% to RM772.3 million against RM633.6 million while revenue rose by 57.03% to RM7.75 billion from RM4.93 billion reported in the same period a year ago.

In 1HFY22, IOI Corp realised an average CPO price of RM4,305 per tonne compared to RM2,782 per tonne in the year-ago period.

On a quarterly basis, the group’s net profit came in 78.21% higher against RM277.6 million registered in the immediate preceding quarter (1QFY22) while revenue gained 13.22% from RM3.63 billion in 1QFY22.

Moving forward, the group said it anticipates CPO price to remain strong until at least the middle of this year, supported by global edible oil supply tightness as well as growth in global economy as the Covid-19 pandemic transitioned to the Covid-19 endemic phase.

“Overall, the group expects its performance during the remaining periods of FY22 to be good on the back of strong performance from our plantation segment.

“For the remaining periods of FY22, we foresee an improvement in the operating performance of the specialty fats sub-segment comprising our associate company Bunge Loders Croklaan with the continued growth in the global economy, although the operating environment still present challenges such as high freight cost and rising energy cost,” it said.

Shares in IOI Corp finished two sen or 0.45% higher to RM4.42 on Wednesday, valuing the company at RM27.78 billion.