KUALA LUMPUR, Aug 22 — IOI Corporation Bhd (IOI Corp) recorded a lower net profit of RM1.11 billion for the financial year ended June 30, 2023 (FY2023) from RM1.72 billion in FY2022.
In a filing with Bursa Malaysia, it said revenue also declined to RM11.58 billion against RM15.58 billion previously.
IOI Corp said the underlying profit before tax (PBT) of RM1.76 billion for FY2023 was 31 per cent lower than the underlying PBT of RM2.54 billion for FY2022, due mainly to lower contribution from the plantation segment, mitigated by higher contribution from resourced-based manufacturing segment.
On prospects, the group said the company foresees the crude palm oil (CPO) price to remain range-bound between RM3,500 and RM4,000 per tonne until the end of the year before moving higher as a result of lower palm fruit production due to the effects of the El Nino phenomenon, which is expected to intensify in the coming months.
“For our plantation segment, we have forecast a moderate increase in fresh fruit bunches (FFB) production for FY2024 notwithstanding the adverse effects of the abovementioned El Nino phenomenon and the ongoing accelerated replanting programme in Sabah.
“All things considered, we are optimistic of a satisfactory financial performance for the plantation segment in FY2024,” it said.
IOI Corp also said that the US dollar-ringgit exchange rate, which affects the foreign exchange translation gain/loss arising from its US dollar-denominated borrowings, would be volatile with the uncertainties in the US Federal Reserve’s monetary policy.
Overall, the group expects its operating and financial performance for FY2024 to be satisfactory. — Bernama
