B1. Review of the performance of the Company and its principal subsidiariesThe revenue and profit before tax (“PBT”) of the Group was RM179.14 million and RM24.26 million respectively for the cumulative two quarters ended 31 July 2007, as compared to RM116.13 million and RM10.44 million respectively for last year’s corresponding period.
The large 54% and 132% increases in revenue and PBT respectively were mainly contributed by higher crude palm oil price which was 60% more than last year’s corresponding period.
The profit from plantation operation for the period under review increased by 191% or RM11.73
million to RM17.86 million as a result of the good palm oil prices despite a drop in FFB production from 95,700MT to 93,500MT. As for the milling operation, the profit also increased by 97% or RM3.40 million to RM6.89 million mainly contributed by good performance of our Keningau mill.
B2. Comparison of profit before tax for the quarter reported on with the immediate preceding quarter
The PBT for the current quarter was RM18.52 million which is RM12.78 million or 223% higher than RM5.74 million achieved last quarter ended 30 April 2007. The higher PBT was mainly contributed by 30% increase in FFB production as well as 26% increase in palm oil prices. In addition, the improved rate of utilisation of capacity of our mills also resulted in better profit contribution in the current quarter.
B3. Current financial year prospects
For the financial year ending 31 January 2008, we expect a significant increase in the roduction from both the plantation and milling operations as compared to financial year 2007. With a more productive age profile of the palms, the plantation operations production is expected to increase about 15%. For the milling operations, the FFB processed by the mill at Keningau is expected to further increase and contribute in boosting the palm oil production for the Group.
Barring any unforeseen circumstances, based on the above factors and high CPO price expected, the Board expects the Group to perform better in the second half as compared to first half of the financial year ending 31 January 2008
For the financial year ending 31 January 2008, we expect a significant increase in the roduction from both the plantation and milling operations as compared to financial year 2007. With a more productive age profile of the palms, the plantation operations production is expected to increase about 15%. For the milling operations, the FFB processed by the mill at Keningau is expected to further increase and contribute in boosting the palm oil production for the Group.
Barring any unforeseen circumstances, based on the above factors and high CPO price expected, the Board expects the Group to perform better in the second half as compared to first half of the financial year ending 31 January 2008
