Johor Plantations posts RM100mil net profit in Q3 2026, declares 1.50 sen dividend

Johor Plantations Group Bhd (JPG) announced a net profit of RM100.32 million for Q3 FY26, marking a 5.45% decline from RM106.04 million in the same period last year. Despite the year-on-year dip, the group experienced a robust sequential recovery, with net profit surging 96% quarter-on-quarter to RM51.2 million. Revenue for Q3 FY26 was RM450.72 million, a 9.2% contraction from RM496.15 million a year ago, but grew by 8.4% from the previous quarter's RM415.84 million.

The revenue decline was mainly due to lower delivery volumes, with CPO and PK deliveries falling by 15.9% and 10.4%, respectively. These drops were partly offset by stronger selling prices, with CPO prices up 6.5% to RM4,683 per tonne and PK prices up 6.6% to RM3,747 per tonne. Rising operational expenses, including a 13.5% increase in CPO cost of production to RM2,526 per tonne, contributed to the profit decline.

However, impressive FFB production, reaching 292,352 tonnes, helped lower internal CPO cost of production by 9.4% sequentially. The company declared a 1.50 sen per share interim single-tier dividend, totaling approximately RM37.38 million, payable on Dec 10. Looking ahead, JPG anticipates CPO prices to remain range-bound due to biodiesel demand and seasonal consumption, while elevated inventory levels may constrain significant price upside.

Prolonged dry conditions and the potential effects of El Niño on yields remain key uncertainties. The group's strategic focus includes improving productivity, accelerating mechanisation, and maintaining cost discipline amidst higher minimum wage pressures.