IOI Corp 4Q net profit up 51%

by **Cals** Wed 20 Aug 2014, 22:27

Business & Markets 2014

Written by Adrian Wong of theedgemalaysia.com

Wednesday, 20 August 2014 20:25

KUALA LUMPUR (Aug 20): IOI Corp Bhd posted a 51% increase in net profit year-on-year for its fourth quarter ended June 30, 2014 (4QFY14), despite recording lower revenue during the same period.

Net profit rose to RM407.5 million in 4QFY14 from RM270.7 million a year ago. Revenue was lower at RM2.831 billion from RM2.94 billion in 4QFY13.

The company attributed the results to a translation gain of RM101.3 million on foreign currency denominated borrowings and gain of RM52.4 million arising from the demerger of the property business from the group.

IOI's plantation profit rose by 92% to RM318.6 million for 4QFY14, compared with RM165.5 million in 4QFY13. Higher crude palm oil (CPO) prices, palm kernel prices and higher fresh fruit bunch production were the driving factors behind the figures.

The average CPO price for 4QFY14 was RM2,661 per tonne against RM2,314 per tonne a year ago.

For the 12 months period ended June 30, 2014 (FY14), IOI’s net profit rose 71% to RM3.37 billion, which included a RM2.12 billion profit from discontinued operations (property segment), from RM1.97 billion the previous year.

Excluding the discontinued operations, the group registered lower net profit of RM1.25 billion compared with RM1.28 billion in FY13.

Revenue for FY14 was also lower at RM11.91 billion from RM12.2 billion.

IOI Corp closed up 1 sen or 0.2% higher at RM5 today, giving it a market capitalisation of RM31.8 billion.