United Plantations Berhad (2089) Q3 2024 earnings summary

Executive summary

• Revenue for the nine months ended 30 September 2024 rose 6.8% year-over-year to RM1,570.5 million, driven by higher CPO and PK prices in both plantation and refinery segments.

• Profit before tax increased 5.3% year-over-year to RM698.5 million, mainly from improved plantation segment performance.

• Net profit attributable to equity holders grew 5.3% year-over-year to RM533.8 million.

• Earnings per share for the nine months was 128.70 sen, up from 122.18 sen in the prior year period.

Financial highlights

• Q3 2024 revenue was RM547.7 million, up 1.4% year-over-year and 0.3% sequentially.

• Q3 2024 profit before tax fell 8.2% year-over-year but rose 17.4% sequentially to RM280.9 million.

• Operating expenses increased 33.8% year-over-year in Q3, while other operating income rebounded to RM33.9 million.

• Cash and cash equivalents at period end were RM454.98 million, down from RM579.87 million at year-end 2023.

• Dividends paid in the period totaled RM456.3 million, including a final and special dividend.

Outlook and guidance

• Palm oil prices recovered above RM4,100/MT in September, supported by lower Indonesian production and strong exports.

• Management expects satisfactory results for the year, focusing on yield improvements, cost control, and mechanization.

• Key risks include global economic uncertainty, inflation, interest rates, and geopolitical conflicts impacting demand.