Record-Breaking Performance Driven by Higher Volumes
Johor Plantations Group Bhd has reported an exceptionally strong performance for the second quarter that ended on June 30, 2025, with its bottom line surging by an impressive 51 percent. This significant increase in net profit, which jumped to RM75.19 million from RM49.74 million in the same quarter last year, was primarily driven by higher delivery volumes for key products, namely crude palm oil (CPO) and palm kernel (PK). The company’s revenue also saw a robust rise to RM398.29 million, a notable improvement from the RM360.91 million recorded in the comparative quarter. Furthermore, the group’s performance was bolstered by a strategic increase in outside crop purchase (OCP), a tactic that helped sustain production throughput and significantly strengthen profitability throughout the quarter. As a result, the company’s earnings per share also saw a healthy bump, increasing from 2.44 sen to 3.01 sen.
Strategic Focus on Efficiency and Sustainability
The company’s strong performance was not limited to the second quarter alone, with the first half of the year also showing considerable growth. For the six-month period, Johor Plantations recorded a net profit of RM151.12 million on revenue of RM738.72 million, a substantial improvement over the previous year. According to managing director Mohd Faris Adli Shukery, this success is a direct result of disciplined efforts across the upstream segment and a continued focus on expanding external crop sourcing. He highlighted the company’s ongoing commitment to enhancing operational efficiency, optimizing inventory, and proactively managing costs. Shukery also emphasized that a steadfast commitment to sustainability remains central to the company’s long-term value creation strategy. Despite acknowledging potential demand-supply imbalances in the CPO market moving forward, he expressed confidence in the group’s ability to navigate these conditions effectively.
Forward-Looking Strategy and Leadership Transition
Looking ahead, Johor Plantations has outlined a clear strategy to maintain its growth trajectory. The company’s focus will remain on optimizing price realization, sustaining production growth, exercising rigorous cost control, and advancing its downstream expansion. In a significant corporate development, the company has announced a key change in its leadership team. Effective September 1, 2025, Zain Azrai Zainal Abidin will be appointed as the new chief financial officer (CFO), succeeding the retiring Aziah Ahmad. Zain, who joined the group as deputy CFO in June, brings extensive experience in finance, strategy, and investment management, ensuring a seamless transition. As a sign of its financial health and commitment to shareholders, the board has also declared a second interim dividend of 1.25 sen per share, which will go ex on August 29, 2025, and be payable on September 22, 2025.
