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Profitability
The Group’s
Retained Earnings
in FYE2019 grew to RM460.34
million against RM432.87 million
recorded in the previous year. The
increase was due to higher profit
attributable to the equity holders
of the Company amounting
RM57.45 million compared to
dividend payment of RM30.05
million.
Gross Profit
for the Group
declined by 13.2% y-o-y to
RM99.48 million from RM114.63
million on the back of lower
revenue recorded during the
financial year. The decrease in
revenue is mainly attributable to
a decline in revenue contribution
from Plantation division by 25.5%.
The Group’s
Gross Profit Margin
of 40.7% is higher by 0.4% from
last year (FYE2018: 40.3%) due to
lower cost of sales.
Cost of Sales
is 14.6% lower y-o-y at RM145.24
million, corresponding to the
lower business volumes generated
together and lower manuring and
upkeep related expenses recorded
by our Indonesian plantation
subsidiary. The lower Cost of Sales
is also reflective of the decrease
in our Manufacturing division’s
cost of sales by RM11.23 million to
RM91.69 million.
The Group’s
Earnings Before
Interest and Taxation
increased
from the same period last year
by 30.4% from RM61.08 million
to RM79.65 million mainly driven
by write back of impairment loss
on PPE of RM23.63 million, lower
administrative and selling and
marketing expenses.
Taxation Expenses
came down
from RM20.89 million in the
prior year to RM14.15 million in
FYE2019 primarily due to reduced
earnings and overprovision of
RM2.38 million in prior year’s tax
computation. Effective tax rate
in FYE2019 is 18.7% compared to
35.2% in FYE2018.
Profit After Tax
increased
by 63.0% to RM65.33 million
compared to RM40.07 million
in the previous financial year, in
line with the increase in the profit
before tax due to write back of the
impairment loss on PPE amounting
RM23.63 million and lower tax
expenses during the year.
Group Profit Attributable to
Equity Holders of the Company
for the period amounted RM57.45
million (FYE2018: RM34.12 million)
representing an increase of 68.4%.
Basic earnings per share of our
Group increased to 23.90 sen
based on a weighted average of
240.39 million shares (FYE2018:
14.15 sen based on 241.12 million
shares).
performance
review
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