United Plantations Berhad (2089) Q2 2024 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2024 rose 10.0% year-over-year to RM1,022.8 million, driven by higher CPO and PK prices and increased plantation and refinery segment revenues.

• Profit before tax increased 16.9% year-over-year to RM417.7 million, mainly due to higher plantation segment contribution.

• Net profit attributable to equity holders grew 17.6% year-over-year to RM318.8 million.

Financial highlights

• Operating expenses decreased 5.7% year-over-year to RM642.9 million for the six months.

• Earnings per share rose 17.6% year-over-year to 76.86 sen.

• Cash and cash equivalents at period end were RM410.7 million, down from RM579.9 million at year-end 2023.

• Final and special dividends totaling RM456.3 million were paid in May 2024.

Outlook and guidance

• Palm oil prices recovered to RM4,000/MT at end-June, supported by lower-than-expected production and improved demand in China.

• Management expects satisfactory results for 2024, focusing on yield, cost, and productivity improvements amid global uncertainties and high input costs.