You are here

Sime Darby Plantation posts 89% fall in Q1 profit

Kuala Lumpur

SIME Darby Plantation Berhad, the world's largest oil palm planter by land holdings, said on Friday that its first-quarter profit slumped 89 per cent due to lower palm prices and reduced margins.

Profit for the July-September period fell to RM115 million (S$37.65 million) from RM1.02 billion a year earlier. Revenue declined 14 per cent to RM3.04 billion.

Earnings were hurt by a decline in both crude palm oil (CPO) and palm kernel prices, the company said. "The business environment remains challenging," managing director Mohd Bakke Salleh said in a statement.

CPO prices are expected to remain under pressure, mainly due to the seasonal rise in production, higher inventories and sluggish export demand, the company added.

Sime Darby Plantation is a spin-off from Sime Darby Berhad. Last year, the group announced a split into three standalone businesses that could each focus on their core activities. REUTERS

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes