United Plantations Berhad (2089) Q4 2024 earnings summary

Executive summary

• Achieved record profit after tax of RM719 million for FY2024, up 1.1% year-over-year, driven by higher commodity prices and operational efficiencies despite lower production volumes.

• Revenue increased 9.1% to RM2,198 million, supported by higher palm oil prices and downstream sales.

• Group CPO production declined 3.7% to 256,009 MT due to adverse weather in Indonesia and Malaysia, but cost control and forward sales supported margins.

• Maintained strong sustainability performance, ranked No. 2 globally and No. 1 in SE Asia in SPOTT ESG assessment.

• Board recommends total dividend payout of RM709 million (99% payout ratio), with a bonus issue increasing share capital.

Financial highlights

• Revenue: RM2,198 million (+9.1% year-over-year).

• Profit after tax: RM719 million (+1.1% year-over-year).

• Earnings per share: 172 sen (+0.6% year-over-year).

• Total equity: RM2,817 million; cash position: RM487 million.

• Dividend per share (pre-bonus): 171 sen; post-bonus: 114 sen.

Outlook and guidance

• 2025 outlook shaped by normalization of inflation, cautious monetary policy, and ongoing geopolitical risks.

• Palm oil prices expected to remain volatile; focus on productivity, cost efficiency, and sustainability to maintain competitiveness.

• Anticipates continued challenges from high input costs and global economic uncertainties but expects satisfactory performance.