KUALA LUMPUR (March 26): Plantation outfit United Malacca Bhd has recorded a 49% jump in net profit for the third financial quarter, lifted by an improvement in its Indonesian operations as well as lower investment losses.

Net profit for the three months ended Jan 31, 2024 rose to RM18.97 million from RM12.71 million in the previous year as its Kalimantan operation posted a RM3.5 million profit against a RM1.7 million loss a year earlier on higher fresh fruit bunches (FFB) production as well as average crude palm oil and palm kernel prices and higher milling margin.

Its Malaysian operation posted a 3% rise in profit for the quarter, according to the group's filing with Bursa Malaysia on Tuesday. No dividend was declared for the quarter.

United Malacca recorded a lower investment loss of RM100,000 against RM6.1 million previously on the back of a net foreign exchange gain of RM364,000. The group’s revenue for the quarter however declined by 11.1% to RM143.69 million from RM161.63 million.

Moving forward, the group expects FFB production to grow in the financial year ending April 30, 2024 (FY2024) due to better age profile improvement in its Indonesian operations (Kalimantan and Sulawesi).

“Management's priority remains focused on improving labour productivity, mechanisation initiatives and cost efficiency as well as increasing oil yield,” it said.

For the nine months ended Jan 31 (9MFY2024), United Malacca’s net profit tumbled 32.92% to RM35.37 million from RM52.72 million as revenue dropped by 9.6% to RM424.15 million from RM469.2 million.

Shares of United Malacca closed unchanged at RM5 at Tuesday’s closing bell, giving the group a market capitalisation of RM1.05 billion.