Highlight Genting Plantations 3Q profit plunges 60% yoy to RM63m

by **Cals** Wed 27 Nov 2013, 22:21

Highlight Genting Plantations 3Q profit plunges 60% yoy to RM63m

Business & Markets 2013

Written by Ahmad Naqib Idris Adzman Shah of theedgemalaysia.com

Wednesday, 27 November 2013 19:12

KUALA LUMPUR (Nov 27): Genting Plantations Bhd saw a 60% plunge in net profit to RM36.3 million in its third quarter ended 30 Sept 2013, from RM91.4 million in the previous corresponding quarter.

But revenue for 3QFY13 rose 5% to RM342.5 million from RM326.6 million in 3QFY12.

For the nine months to September 2013, net profit declined 49% to RM122.7 million, from RM240.0 million in the previous corresponding period.

Cumulative revenue for 9MFY13 rose to RM976.2 million, up from RM893.2 million.

“The higher revenue in 9MFY13 was underpinned by the improved performances of the property segment and the plantation-Indonesia segment, coupled with maiden sales of biodiesel from the group’s plant in Lahad Datu,” said Genting Plantations in a press release.

However, the group said the fall in palm product prices had continued to reduce the Plantation-Malaysia segment of the group’s margins, despite input cost being well contained due to the group’s higher crop yield.

The group’s property segment had done well in the quarter under review, with higher sales of industrial and commercial properties in Genting Indahpura.

Its biotechnology segment, on the other hand, had incurred higher expenditure as it intensified its research and development activities.

“Looking ahead, the direction of palm product prices, crop production trends and input cost factors as well as the demand for the group’s property offerings are among factors that are expected to have a bearing on the group’s prospects for the rest of the 2013 financial year,” said Genting Plantations.

The group said it will adopt initiatives in order to adapt to the changing market and regulatory environment as far as its property segment is concerned.

For its biotechnology segment, the group said it will continue to improve its research and development capabilities in order to meet its objective of providing solutions for sustainable agriculture.