Ta Ann 3Q net profit jumps 51.6% to RM47.93m

KUALA LUMPUR (Nov 23): TA ANN HOLDINGS BHD [] net profit for the third quarter ended Sept 30, 2011 jumped 51.6% to RM47.93 million from RM31.6 million a year earlier, due mainly to the strong profit contribution from the oil palm division which recorded a 70% higher profit compared to the corresponding quarter in 2010.

The company said on Wednesday that its revenue for the quarter rose 9.99% to RM254.44 million from RM231.32 million.

Earnings per shares rose to 15.52 sen from 10.23 sen in 2010, while net assets per share was RM2.92.

For the nine months ended Sept 30, Ta Ann’s net profit surged to RM125.23 million from RM47.07 million, on the back of an increase in revenue to RM714.38 million from RM607.72 million in 2010.

Reviewing its results, Ta Ann said the better performance in the quarter under review was also contributed by an increase in plywood prices that rose by 21%, although its overall sales volume for timber and timber products fell by 9% quarter-on-quarter.

On its prospects, Ta Ann said demand for timber and timber products were expected to moderate in the last quarter of 2011.

The company said the oil palm sector’s performance would be boosted by the recovery in crude palm oil price to above RM3,000 per tonne level and retain its position as the main profit contributor.

“Barring unforeseen circumstances, the board expects year 2011 to deliver a record performance,” it said.