JOHOR BAHRU, 2 July 2024 – Johor Plantations Group Berhad (formerly known as Johor Plantations Berhad) (JPG), announced the unaudited financial results of JPG and its subsidiaries (collectively, the Group) for the first quarter ended 31 March 2024 (1Q FY2024). Revenue of the Group increased by 17.0% year-on-year (YoY), from RM252.0 million for the first quarter ended 31 March 2023 (1Q FY2023) to RM294.9 million for 1Q FY2024 while profit after tax (PAT) rose by 111.5% YoY, from RM23.4 million to RM49.5 million.
The Group reported higher revenue and PAT for the period largely due to:
- 20.8% YoY increase in crude palm oil (CPO) delivery volume from 52,090 metric tonnes (MT) in 1Q FY2023 to 62,925 MT in 1Q FY2024;
- 7.6% YoY increase in palm kernel (PK) delivery volume from 14,749 MT in 1Q FY2023 to 15,873 MT in 1Q FY2024;
- 4.8% YoY increase in PK selling price which was partially offset by a 1.9% YoY decline in CPO selling price in 1Q FY2024 compared to 1Q FY2023; and
- lower manuring costs in 1Q FY2024 compared to 1Q FY2023.
Mohd Faris Adli Shukery, Managing Director of JPG, said, “We are pleased to start the year with this strong performance. Our growth in revenue and profit is the result of our successful initiatives in maximising operational efficiency, enhancing digitalisation and mechanisation in our production processes, and implementing cost controls throughout the Group. Furthermore, our initial public offering (IPO) and upcoming listing on the Main Market of Bursa Malaysia Securities Berhad on 9 July 2024 marks the next evolutionary milestone for us as we drive sustainable growth and long-term value for our stakeholders. Moving forward, we remain committed to our mission, which is to produce sustainable essentials for mankind while adhering to the strict principles of transparency and traceability.”
Following the IPO exercise, JPG’s business roadmap for growth will focus on enhancing the Group’s core businesses as a fully integrated oil palm producer. The Group will leverage its strong position in the upstream segment to expand into the downstream business – a strategic move that was recently initiated through a joint venture with a Japan-based company, namely, Fuji Oil Asia Pte Ltd. A core component of this joint venture is the development of a downstream refinery as part of an integrated sustainable palm oil complex (iSPOC) in the Pasir Logok Estate. The iSPOC will also house a palm oil mill, a kernel crushing plant, a bio-energy power plant, and an animal feedmill plant, and will be powered by renewable energy.
The Group remains committed to producing high quality sustainable products to maintain its strong presence in the international palm oil market and drive sustainable impact in the local agribusiness sector. All of JPG’s operation units are certified by the Malaysian Sustainable Palm Oil (MSPO) and the globally-recognised Roundtable on Sustainable Palm Oil (RSPO). With an unwavering focus on quality and sustainability, JPG commands a premium for its products in the market.
“With the upcoming IPO, we are poised to strengthen our position in the palm oil industry through sustainable practices and innovative ventures. Additionally, our contributions to the nation and economy highlight our vital role in delivering value to stakeholders and supporting the wider community,” added Mohd Faris Adli Shukery.
