KUALA LUMPUR: Boustead Plantations Bhd’s (BPB) net profit surged to RM595.31 million for the financial year 2022 (FY2022) from RM241.29 million a year earlier as it benefited from higher crude palm oil (CPO) prices and gains from land disposals.
The company told the stock exchange it registered record-breaking revenue of RM1.18 billion, an increase from RM1.05 billion gained in FY2021 and the highest since its listing in 2014.
BPB also declared a fourth interim single-tier dividend of 3.3 sen per share for the year ending Dec 31, 2022, to be paid on March 22, 2023.
This put the total dividend declared to date at 14.45 sen, surpassing last year’s total dividend of 8.35 sen.
In the fourth quarter (4Q 2022), the company’s net profit increased to RM87.29 million from RM85.14 million in 4Q 2021, while revenue fell to RM263.58 million from RM341.50 million previously, dragged down by lower palm product prices.
In a separate statement, BPB said higher collections from customers due to higher crude palm oil (CPO) prices and “proceeds received from the disposal of Kulai Young land had strengthened overall cash flows in FY2022, which allowed the group to fund our working capital internally and pare down borrowings.”
“As a result, the group’s debt-to-equity ratio stood at 0.29 time, improved from the Dec 31, 2021 position of 0.37 time.
“Likewise, the group’s net current liabilities as at Dec 31, 2022 stood at RM200 million, a reduction of RM281 million from RM481 million as at Dec 31, 2021,” it added.
BPB said its earnings per share grew to 26.58 sen from 10.77 sen registered in FY2021.
Moving forward, acting chief executive officer Fahmy Ismail said palm oil stock levels in Malaysia and Indonesia have been forecast to improve following the increase in mature areas, better weather conditions as well as improved labour supply.
“Capitalising on these conditions, the group will continue to maximise productivity via various yield enhancement initiatives, supported by other ongoing efforts to modernise our operations.
“As we remain resolute to the ‘Reinventing Boustead Strategy’ the group commits to our reform initiatives in transforming BPB into a sustainable technology-based plantation company by ramping up mechanisation and digitalisation efforts, while steadfastly upholding the principles of environmental, social and governance (ESG) in our operations,” he said.
Source: The Star