KUALA LUMPUR: Johor Plantations Group Bhd (JPG) saw a substantial rise in its net profit, surging by 111.5 per cent to RM49.5 million in the first quarter ending March 31, 2024 (1Q24), compared to RM23.4 million in the same period a year ago.
Revenue for the quarter rose to RM294.91 million versus RM251.98 million previously, mainly due to increases in revenue from selling crude palm oil (CPO) and palm kernel (PK).
Earnings per share increased to 2.45 sen from 1.3 sen in 1Q23, the group's filing to Bursa Malaysia showed.
JPG managing director Mohd Faris Adli Shukery said the company is pleased to start the year with this strong performance.
He added that the company's growth in revenue and profit is the result of our successful initiatives in maximising operational efficiency, enhancing digitalisation and mechanisation in our production processes, and implementing cost controls. "Furthermore, our initial public offering (IPO) and upcoming listing on the Main Market of Bursa Malaysia on July 9 marks the next evolutionary milestone for us as we drive sustainable growth and long-term value for our stakeholders. "Moving forward, we remain committed to our mission, which is to produce sustainable essentials for mankind while adhering to the strict principles of transparency and traceability," he said in a separate statement.
Following the IPO exercise, JPG's business roadmap for growth will focus on enhancing the company's core businesses as a fully integrated oil palm producer.
The company said it will leverage its strong position in the upstream segment to expand into the downstream business – a strategic move that was recently initiated through a joint venture with a Japan-based company, namely, Fuji Oil Asia Pte Ltd.
A core component of this joint venture is the development of a downstream refinery as part of an integrated sustainable palm oil complex (iSPOC) in the Pasir Logok Estate.
JPG also remains committed to producing high quality sustainable products to maintain its strong presence in the international palm oil market and drive sustainable impact in the local agribusiness sector.
With a focus on quality and sustainability, JPG said it commands a premium for its products in the market.
"With the upcoming IPO, we are poised to strengthen our position in the palm oil industry through sustainable practices and innovative ventures. "Additionally, our contributions to the nation and economy highlight our vital role in delivering value to stakeholders and supporting the wider community," Mohd Faris said.