Ta Ann 2Q profit rises 82% on Australian govt compensation

Ta Ann 2Q profit rises 82% on Australian govt compensation
Business & Markets 2013
Written by Chong Jin Hun of theedgemalaysia.com
Tuesday, 27 August 2013 19:00

KUALA LUMPUR (August 27): TA ANN HOLDINGS BHD [] posted an 82% rise in second quarter net profit from a year earlier. This came mainly on a A$20.3 million (about RM60 million) compensation from the Australia government for wood-supply entitlement.

In a statement to Bursa Malaysia, Ta Ann said net profit rose to RM24.2 million from RM13.32 million. Revenue climbed to RM199.93 million from RM187.99 million.

"First tranche compensation of A$20.30 million net of GST received in June 2013 by the Australian subsidiary, Ta Ann Tasmania Pty Ltd, for wood supply entitlement returned to the Australian government increased the income of the group," Ta Ann said.

Higher plywood sales had also supported group bottom line, the firm said.

Looking ahead, Ta Ann said the timber sector is expected to be the leading revenue contributor for the group while logging and oil palm operations are seen as the main profit contributors.

“Barring unforeseen circumstances, the board of directors anticipates a better operational performance from the various divisions of the group," Ta Ann said.