KUCHING: Rimbunan Sawit Bhd (RSawit) has posted a 24.8 per cent jump in group revenue to about RM676 million in financial year ended Dec 31, 2022 (FY2022) from RM541.5 million in FY2021 as a result of higher production volume of crude palm oil (CPO), palm kernel (PK) and fresh fruit bunches (FFB) and their better average sales prices.
The revenue growth helped the group to steeply reduce its group net loss to RM356,000 from RM6.53 million in FY2021.
Losses per share were cut to 0.02 sen from 0.32 sen.
In FY2022, the group sold 110,607MT of CPO (FY2021: 103,527MT) and 23,812MT of PK (22,359MT).
In Q42022, RSawit reported incurred wider gross net loss of RM3.22 million (Q42021: -RM2.61 million) as revenue fell to RM154.2 million (RM166.1 million).
“The shrinkage in revenue and gross profit was mainly due to decrease in average selling price on CPO, FFB and PK by 24.1 per cent, 33.9 per cent and 43.4 per cent to RM3,815, RM670 and RM1,958 per tonne respectively,” RSawit said in explanatory notes to its financials.
The Q42022 results bettered that of Q32022 when RSawit posted group net loss of RM10.7 million on lower revenue of RM149.4 million.
In Q32022, the group recorded FFB output of 59,359MT, CPO 31,063MT and PK 6,718MT and sold 29,965MT of CPO and 6,764MT of PK.
The company said the group pre-tax profit surged by 97.3 million to RM5.7 million in FY2022 from RM2.9 million in FY2021 in line with the group’s efforts in rationalising plantation and administration costs, followed with lower loss after taxation by 19.3 per cent from RM7 millionto RM5.6 million year-on-year.
Commenting on prospects, RSawit said the spot CPO price fell 11 per cent to RM3,691 per tonne on Feb 2,2023 from RM4,165 per tonne on Jan 3, 2023 amid concerns over a possible slowdown in imports of edible oils by India in the coming months due to high vegetable stocks in the country.
“We are of the view that the downside to the CPO price may be limited in the near term as Indonesia announced on Feb 6 2023 that it may suspend some palm oil export permits to secure domestic supply amid rising cooking oil prices ahead of the Lebaran festival,” added the company.
Meanwhile, YKGI Holdings Bhd has delivered disappointing yearly financial results, with the group incurring net loss of RM5.89 million in FY2022, a reversal from profit of RM6.42 million in FY2021 despite achieving higher revenue of RM276.7 million from RM243.7 million.
Losses per share stood at 1.31 sen from earnings per share of 1.49 sen in FY2021.
In Q42022, YKGI posted group net loss of RM2.21 million (Q42021: +RM2.17 million) on increased revenue of RM74.3 million against RM71.5 million in Q42021.
YKGI said the increase in revenue in the current quarter by RM2.8 million was mainly due to higher turnover generated by the engineering services and projects.
“The high loss registered in the current quarter (operating loss of RM0.8 million against operating profit of RM4.9 million in Q42021) was primarily due to much lower gross profit margin arising from increased cost of sales,” added the company.
In the current quarter under review, the East Malaysia operations contributed RM55.1 million (Q42021: RM49.9 million) to group turnover while the West Malaysia operations chipped in RM19.24 million (RM21.6 million)
The East Malaysia operations is involved in the manufacture and sale of pre-painted, galvanised iron, rolled-formed products and trading in hardware and building materials. The West Malaysia operations is engaged in manufacture and sale of roll-formed products, trading of coated and non-coated coils.
The Q42022’s performance was an improvement from Q32022 when YKGI posted group net loss of RM4.3 million (Q42022: -RM2.21 million) on lower revenue of RM68.5 million (RM74.3 million).
The company said the better performance in Q42022 was mainly due to higher revenue with more stable prices of the products as compared to the preceding quarter, resulting in better gross profit margin.
