KUCHING: Subur Tiasa Holdings Bhd group has sunk into the red with net loss of RM7.24 million in first quarter ended March 31, 2023 (Q12023) from net profit of RM11.1 million in Q12022 as all its business segments were reporting losses.
The dismal performance was due to significant lower group revenue of RM107.5 million recorded in the current quarter against RM128.9 million in Q12022.
Loss per share was 3.84 sen as compared to earnings per share of 5.88 sen previously.
In the current quarter under review, the oil palm segment recorded sharply lower revenue of RM45.3 million (Q12022: RM80.2 million) but the timber segment posted higher revenue of RM57.2 million (RM47.1 million). The others segment also grew its revenue to RM5.1 million (RM1.45 million).
The oil palm segment registered pre-tax loss of RM6.27 million (+RM21.9 million) while the timber segment and others segment also recorded losses of RM1.18 million (-RM3.7 million) and RM784,000 (-RM1.32 million) respectively.
Subur Tiasa said the RM34.9 million or 44 per cent drop in oil palm segment revenue in Q12023 as compared to a year ago was mainly due to a 34 per cent slide in crude palm oil (CPO) price to RM3,998 per tonne from RM6,058 per tonne, lower fresh fruit bunch (FFB) sales volume of 62,445 tonnes as compared to 64,269 tonnes recorded in Q12022 as some of the estates were affected by flooding.
“Apart from that, higher fertiliser costs have also contributed to the pre-tax loss,” it explained in its financials.
Subur Tiasa said the timber segment recorded a 21 per cent increase in revenue to RM57.2 million and incurred lower loss of RM1.2 million as a result of higher sales volume of logs and timber panels.
Compared to the immediate preceding quarter (Q42022), Subur Tiasa’s Q12023 results were much weaker.
In the current quarter, the oil palm segment recorded a 33 per cent drop in revenue to RM45.3 million (Q42022: RM67.2 million) due to a 34 per cent decrease in FFB production volume, and posted pre-tax loss of RM6.27 million (+RM9.93 million). The timber segment’s performance improved slightly with higher sales of RM57.2 million (RM56.4 million) and reduced pre-tax loss of RM1.17 million (- RM1.27 million). The others segment’s pre-tax loss was significantly cut to RM784,000 (-RM4.19 million) as its revenue was boosted to RM5.1 million (RM4.38 million).
On prospects for the current financial year, Subur Tiasa said the CPO price is expected to remain firm due to the palm oil output remaining tight, driven
by the severity of the floods in major parts of the oil palm estates in Malaysia.
“If the El Nino weather pattern were to recur in the second half of 2023, there is a possibility of the CPO price experiencing a positive upside.
“The group’s FFB production volume is expected to improve from 2nd quarter onwards in with the upcoming peak crop season.”
Subur Tiasa expects the group to deliver positive returns in the coming quarters on the back of higher FFB production and its commitments towards cost and management efficiency.
