KUALA LUMPUR: IOI Corp Bhd
said its bottomline was negatively impacted by forex losses and fair value losses in the second quarter ended Dec 31, 2024 (2QFY25), despite an improved performance in its plantations business.
In 2QFY25, the group said net profit was RM111.1mil, as compared to RM335.4mil in the year-ago quarter, which translates to a slump in earnings per share to 1.79 sen form 5.41 sen previously.
IOI reported revenue of RM2.97bil during the quarter under review as compared to RM2.4bil in 2QFY24.
Announcing its results in a bourse filing, the group said its underlying pre-tax profit of RM504.3mil during the quarter was 31% higher year-on-year (y-o-y) than the pre-tax profit of RM383.6mil in 2QFY24.
However, the group said pre-tax profit was eroded by non-underlying items, comprising a net foreign currency translation loss of RM189.5mil from foreign currency denominated borrowings and deposits, a RM800,000 net fair value loss on biological assets and RM93.5mil net fair value loss on derivative financial instruments.
Over the six months period to Dec 31, 2024, IOI said net profit was RM821.8mil, up from RM639.4mil in 6MFY24, while revenue rose to RM5.64bil from RM4.6bil in the previous corresponding period.
The group declared a first interim dividend of five sen per share, going ex on March 11, 2025, and payable on March 24, 2025.
On outlook, IOI project fresh fruit bunch production to recover strongly over hte next three months as the weather improves and the trees emerge from the low production season.
"Combined with the forecast good CPO price, we maintain a positive outlook on the plantation segment’s financial performance for the remaining periods of FY25," said the tgroup.
In the refinery and commodity marketing sub-segment, the group expects competitive pricing from Indonesia to put pressure on its refining margin, while the operating environment in the oleochemical sub-segment is expected to remain challenging.
The group's speciality fats sub-segment, represented by associate firm Bunge Loders Croklaan, is expected to see product margins, particularly for cocoa butter equivalents, remain strong in the remaining quarters of FY25.
"However, potential US tariffs may disrupt the import of raw materials into BLC’s plants in the US and affect product margins there," it added.
Overall, the group said it expects its operating and financial performance for the remaining quarters of FY25 to be satisfactory.