IOI Corp 1Q profit plunges 50% yoy

by **Cals** Tue 19 Nov 2013, 00:03

Business & Markets 2013

Written by Ahmad Naqib Idris Adzman Shah of theedgemalaysia.com

Monday, 18 November 2013 19:05

KUALA LUMPUR (Nov 18): IOI Corporation Bhd’s (IOI) profit for the first quarter to September had fallen by 50% to RM302 million from RM604 million in the previous year’s corresponding quarter.

The first quarter revenue was near flat, at RM3.24 billion compared to RM3.13 billion in the previous year’s corresponding quarter.

The plantation group said translation loss of RM164.1 million on foreign currency denominated borrowings, coupled with much lower profit from the plantation segment in the quarter had contributed to profit fall.

In the first quarter of the previous financial year, translation gain stood at RM259 million.

IOI said its plantation profit decreased by 36% to RM256.1 million for Q1 FY2014, as compared to RM401.2 million reported for Q1 FY2013.

“Going forward, we also expect higher contribution from our associate in Indonesia, Bumitama Agri Ltd as more of their young palm trees will reach peak production years.”

For the quarter, the group had performed better in their resource-based manufacturing due to increase in sales volume and margin in their sub-segments.

The property development segment had also done well in the first quarter, with higher development revenue and an increase in share of results from jointly controlled entities.

IOI said it expects its performance to be satisfactory in the remaining quarters of the current financial year.