KUALA LUMPUR: Improving efficiencies in United Malacca Bhd
's Indonesian operations are expected to continue driving the plantation group's earnings moving forward, says Kenanga Research.
The group recently released its 3QFY24 results, which outperformed expectations as contributions from the maturing Indonesian operations came in higher than expected.
In 3QFY24, United Malacca's core net profit rose 19% quarter-on-quarter (q-o-q) to RM19.3mil as earnings before interest and tax (Ebit) margin improved 16% to 20% due to continual improvement in its Indonesian harvest.
Despite 2Q typically being United Malacca's most productive quarter, a 10% q-o-q uptick in FFB output from Indonesia offset the weaker Malaysian harvest, which eased unit costs and lifted margins.
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