Third Quarter Report
2024
UNITED PLANTATIONS BERHAD
(Company Registration No. 191701000045 (240 A))
Jendarata Estate 36009 Teluk Intan Perak Darul Ridzuan Malaysia
United Plantations Berhad
Condensed Consolidated Statement of Comprehensive Income for the
Nine Months Ended 30 September 2024
(The figures have not been audited)
----------- Quarter ended 30 September ------------ | ---------- 9 Months ended 30 September ----------- | ||||||
Changes | Changes | ||||||
(RM'000) | 2024 | 2023 | (%) | 2024 | 2023 | (%) | |
Revenue | 547,669 | 540,158 | 1.4% | 1,570,492 | 1,470,219 | 6.8% | |
Operating expenses | (319,395) | (238,713) | 33.8% | (962,340) | (920,469) | 4.5% | |
Other operating income | 33,858 | (3,698) | (1015.6%) | 54,527 | 92,335 | (40.9%) | |
Finance costs | (108) | (182) | (40.7%) | (126) | (544) | (76.8%) | |
Interest income | 5,566 | 5,918 | (5.9%) | 18,527 | 19,498 | (5.0%) | |
Share of results of joint ventures | 13,268 | 2,432 | 445.6% | 17,431 | 2,081 | 737.6% | |
Profit before taxation | 280,858 | 305,915 | (8.2%) | 698,511 | 663,120 | 5.3% | |
Income tax expense | (65,036) | (69,207) | (6.0%) | (162,020) | (153,958) | 5.2% | |
Profit after taxation | 215,822 | 236,708 | (8.8%) | 536,491 | 509,162 | 5.4% | |
Profit for the period | 215,822 | 236,708 | (8.8%) | 536,491 | 509,162 | 5.4% | |
Net profit attributable to: | |||||||
Equity holders of the parent | 215,031 | 235,682 | (8.8%) | 533,839 | 506,787 | 5.3% | |
Non-controlling interests | 791 | 1,026 | (22.9%) | 2,652 | 2,375 | 11.7% | |
215,822 | 236,708 | (8.8%) | 536,491 | 509,162 | 5.4% | ||
Earnings per share | |||||||
(i) Basic - based on an average 414,784,984 | |||||||
(2023:414,784,984) ordinary shares (sen) | 51.84 | 56.82 | (8.8%) | 128.70 | 122.18 | 5.3% | |
(ii) Fully diluted (not applicable) | - | - | - | - | - | - |
The Condensed Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying notes and the Annual Audited Financial Statements for the year ended 31 December 2023.
United Plantations Berhad • Third Quarter Report 2024 • 1/16
United Plantations Berhad
Condensed Consolidated Statement of Comprehensive Income for the
Nine Months Ended 30 September 2024
(The figures have not been audited)
----------- Quarter ended 30 September | ------------ | ---------- 9 Months ended 30 September | ------------ | ||||
Changes | Changes | ||||||
(RM'000) | 2024 | 2023 | (%) | 2024 | 2023 | (%) | |
Profit for the period | 215,822 | 236,708 | (8.8%) | 536,491 | 509,162 | 5.4% | |
Other comprehensive income: | |||||||
Items that will be reclassified subsequently | |||||||
to profit or loss: | |||||||
Currency translation differences | |||||||
arising from consolidation | (17,455) | (7,103) | 145.7% | (29,678) | 22,504 | (231.9%) | |
Cash flow hedge | |||||||
- changes in fair value | (5,361) | (4,280) | 25.3% | (28,341) | 270,049 | (110.5%) | |
- transfers to profit or loss | 5,959 | 4,034 | 47.7% | 12,233 | (290,100) | 104.2% | |
Withholding tax effect on dividend | - | (2,266) | (100.0%) | - | (2,266) | (100.0%) | |
Total Comprehensive income | 198,965 | 227,093 | (12.4%) | 490,705 | 509,349 | (3.7%) | |
Total comprehensive income attributable to: | |||||||
Equity holders of the parent | 199,047 | 226,422 | (12.1%) | 489,537 | 505,848 | (3.2%) | |
Non-controlling interests | (82) | 671 | (112.2%) | 1,168 | 3,501 | (66.6%) | |
198,965 | 227,093 | (12.4%) | 490,705 | 509,349 | (3.7%) | ||
The Condensed Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying notes and the Annual Audited Financial Statements for the year ended 31 December 2023.
United Plantations Berhad • Third Quarter Report 2024 • 2/16
United Plantations Berhad
Condensed Consolidated Statement of Financial Position as at 30 September 2024
(The figures have not been audited)
30 September | 31 December | |
(RM'000) | 2024 | 2023 |
ASSETS | ||
Non-Current Assets | ||
Property, plant and equipment | 1,241,679 | 1,250,828 |
Right-of-use assets | 407,167 | 403,306 |
Associated company | 50 | 50 |
Joint Ventures | 81,933 | 64,001 |
Goodwill | 356,856 | 356,856 |
Other receivables | 487 | 413 |
Deferred tax assets | 1,424 | 2,201 |
Total non-current assets | 2,089,596 | 2,077,655 |
Current Assets | ||
Biological assets | 56,968 | 51,473 |
Inventories | 231,412 | 245,938 |
Trade & other receivables | 222,470 | 213,008 |
Prepayments | 6,687 | 5,421 |
Tax recoverable | 34,778 | 16,809 |
Derivatives | 40,169 | 19,700 |
Cash and bank balances | 454,982 | 579,872 |
Short term funds | 159,308 | 53,729 |
Total current assets | 1,206,774 | 1,185,950 |
Total assets | 3,296,370 | 3,263,605 |
EQUITY AND LIABILITIES | ||
Equity attributable to equity holders of the parent | ||
Share capital | 390,054 | 390,054 |
Treasury shares | (18,668) | (18,668) |
Other reserves | (16,471) | 27,831 |
Retained profits | 2,528,798 | 2,451,223 |
2,883,713 | 2,850,440 | |
Non-controlling interests | 15,458 | 16,980 |
Total equity | 2,899,171 | 2,867,420 |
Non-Current Liabilities | ||
Deferred tax liabilities | 194,478 | 182,604 |
Retirement benefit obligations | 14,048 | 14,098 |
Lease liabilities | 13,258 | 12,687 |
Total non-current liabilities | 221,784 | 209,389 |
Current Liabilities | ||
Trade & other payables | 124,351 | 129,601 |
Tax payable | 48,437 | 48,045 |
Retirement benefit obligations | 2,627 | 2,627 |
Derivatives | - | 6,502 |
Bank borrowings | - | 21 |
Total current liabilities | 175,415 | 186,796 |
Total liabilities | 397,199 | 396,185 |
Total equity and liabilities | 3,296,370 | 3,263,605 |
Net assets per share (RM) | 6.95 | 6.86 |
The Condensed Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes and the Annual Audited Financial Statements for the year ended 31 December 2023.
United Plantations Berhad • Third Quarter Report 2024 • 3/16
United Plantations Berhad
Condensed Statement of Changes in Equity for the Nine Months Ended 30 September 2024 (The figures have not been audited)
Attributable to Equity Holders of the Parent | |||||||||||
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(RM'000) | |||||||||||
Balance at | |||||||||||
1 January 2024 | 390,054 | (18,668) | 2,451,223 | 14,971 | 21,798 | (8,938) | 2,850,440 | 16,980 | 2,867,420 | ||
Total comprehensive | |||||||||||
income for the period | - | - | 533,839 | (16,108) | - | (28,194) | 489,537 | 1,168 | 490,705 | ||
Dividends, | |||||||||||
representing | |||||||||||
total transaction | |||||||||||
with owners | - | - | (456,264) | - | - | - | (456,264) | - | (456,264) | ||
Dividends to non- | |||||||||||
controlling shareholders | |||||||||||
of a subsidiary | - | - | - | - | - | - | - | (2,690) | (2,690) | ||
Balance at | |||||||||||
30 September 2024 | 390,054 | (18,668) | 2,528,798 | (1,137) | 21,798 | (37,132) | 2,883,713 | 15,458 | 2,899,171 | ||
Balance at | |||||||||||
1 January 2023 | 390,054 | (18,668) | 2,492,218 | 31,160 | 21,798 | (25,829) | 2,890,733 | 14,028 | 2,904,761 | ||
Total comprehensive | |||||||||||
income for the period | - | - | 504,521 | (20,051) | - | 21,378 | 505,848 | 3,501 | 509,349 | ||
Dividends, | |||||||||||
representing | |||||||||||
total transaction | |||||||||||
with owners | - | - | (414,785) | - | - | - | (414,785) | - | (414,785) | ||
Dividends to non- | |||||||||||
controlling shareholders | |||||||||||
of a subsidiary | - | - | - | - | - | - | - | (1,193) | (1,193) | ||
Balance at | |||||||||||
30 September 2023 | 390,054 | (18,668) | 2,581,954 | 11,109 | 21,798 | (4,451) | 2,981,796 | 16,336 | 2,998,132 | ||
The Condensed Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes and the Annual Audited Financial Statements for the year ended 31 December 2023.
United Plantations Berhad • Third Quarter Report 2024 • 4/16
United Plantations Berhad
Condensed Consolidated Cash Flow Statements for the Nine Months Ended 30 September 2024 (The figures have not been audited)
9 Months ended | ||
30 September | ||
(RM'000) | 2024 | 2023 |
Operating Activities | ||
-Receipts from operations | 1,572,795 | 1,476,548 |
-Operating payments | (928,264) | (832,193) |
-Placement of deposits in derivative operations | (24,757) | (34,711) |
Cash flow from operations | 619,774 | 609,644 |
Other operating receipts | 53,192 | 91,338 |
Taxes paid | (162,056) | (196,155) |
Cash flow from operating activities | 510,910 | 504,827 |
Investing Activities | ||
- Proceeds from sale of property, plant and equipment | 1,335 | 997 |
- Investment in a joint venture | (500) | - |
- Interest received | 18,625 | 19,644 |
- Purchase of property, plant and equipment | (71,127) | (85,356) |
- Payment for right-of-use assets | (7,263) | (2,407) |
- Net change in short term funds | (105,579) | (29,269) |
Cash flow from investing activities | (164,509) | (96,391) |
Financing Activities | ||
- Dividends paid | (456,264) | (414,785) |
- Dividends paid to non-controlling shareholders of a subsidiary | (2,690) | (1,193) |
- Finance costs paid | (126) | (5) |
- Associated company | (9) | 1 |
- Joint venture | (12,181) | (4,502) |
Cash flow from financing activities | (471,270) | (420,484) |
Net Change in Cash & Cash Equivalents | (124,869) | (12,048) |
Cash & Cash Equivalents at beginning of year | 579,851 | 536,984 |
Cash & Cash Equivalents at end of period | 454,982 | 524,936 |
The Condensed Consolidated Cash Flow Statements should be read in conjunction with the Annual Audited Financial Statements for the year ended 31 December 2023.
Short Term Funds of RM159,308,000 (2023: RM271,551,000) are excluded from Cash Flow Statements due to reclassification of Short Term Funds from Cash & Cash Equivalents.
United Plantations Berhad • Third Quarter Report 2024 • 5/16
United Plantations Berhad
Notes To The Interim Financial Report
A1) ACCOUNTING POLICIES AND BASIS OF PREPARATION
The interim financial statements of the Group for the financial period ended 30 September 2024 are unaudited and have been prepared in accordance with the requirements of Malaysian Financial Reporting Standard ("MFRS") 134: Interim Financial Reporting and paragraph 9.22 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad.
The interim financial statements should be read in conjunction with the audited financial statements for the year ended 31 December 2023. These explanatory notes attached to the interim financial statements provide an explanation of events and transactions that are significant to an understanding of the changes in the financial position and performance of the Group since the year ended 31 December 2023.
At the date of authorization of these interim financial statements, the following MFRSs were issued but not yet effective and have not been applied by the Group:
Effective for annual | |
periods beginning | |
MFRS | on or after |
- Amendments to MFRS 121 - Lack of exchangeability
- Amendments to MFRS 1 - First-time Adoption of Malaysian Financial Reporting Standards
- Amendments to MFRS 7 - Financial Instrument : Disclosures
- Amendments to MFRS 9 - Financial Instrument
- Amendments to MFRS 10 - Consolidated Financial Statements
- Amendments to MFRS 107 -Statement of Cash Flows
- MFRS 18 - Presentation and Disclosure in Financial Statements
- MFRS 19 - Subsidiaries without Public Accountability: Disclosures
- Amendments to MFRS 10 and MFRS 128: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture
1 Jan 2025
1 Jan 2026
1 Jan 2026
1 Jan 2026
1 Jan 2026
1 Jan 2026
1 Jan 2027
1 Jan 2027
Deferred
A2) AUDIT REPORT
The auditor's report on the financial statements for the financial year ended 31 December 2023 was not qualified.
A3) SEASONAL AND CYCLICAL NATURE OF GROUP'S PRODUCTS AND OPERATIONS
The prices for the Group's products are not within the total control of the Group but are determined by the global supply and demand situation for edible oils and it is somewhat related to the price of mineral oil.
Crop production is seasonal. Based on statistics, the Group's production of crude palm oil ("CPO") and palm kernel ("PK") gradually increases from March/April, peaking around July to September, and then declines from October to February. This pattern can be affected by severe global weather conditions such as El-Nino and La Nina.
The prices obtainable for the Group's products as well as the volume of production, which is cyclical in nature, will determine the profits for the Group.
A4) EXCEPTIONAL AND EXTRAORDINARY ITEMS
There were no exceptional or extraordinary items for the current period.
A5) CHANGES IN ESTIMATES
There were no material changes to estimates made in prior period.
United Plantations Berhad Third Quarter Report 2024 6/16
United Plantations Berhad
Notes To The Interim Financial Report
A6) | EQUITY AND DEBT SECURITIES | |
As at 30 September 2024, the number of treasury shares held was 1,483,548 shares as there | ||
were no share buy-back nor any cancellation, re-sale or distribution of treasury shares in the | ||
current period. There was also no issuance of new shares or debt instruments in the current | ||
period. | ||
A7) | DIVIDENDS PAID | |
The following dividends were paid on 14 May 2024 in respect of the financial year ended 31 | ||
December 2023: - | ||
Ordinary | RM'000 | |
Final Dividend of 70 sen paid | 290,350 | |
Special Dividend of 40 sen paid | 165,914 | |
Total | 456,264 | |
A8) | SEGMENTAL INFORMATION | |
The revenues and profit generated by each of the Group's operating segments and segment | ||
assets and liabilities are summarised as follows: |
9 months ended 30 September 2024
Other | |||||
(RM'000) | Plantations | Refining | Segments | Elimination | Total |
Segment Revenue: | |||||
External sales | 536,236 | 1,034,256 | - | - | 1,570,492 |
Inter-segment sales | 460,730 | - | - | (460,730) | - |
996,966 | 1,034,256 | - | (460,730) | 1,570,492 | |
Segment Results: | |||||
Operating profit/(loss) | 578,370 | 84,838 | (529) | - | 662,679 |
Investment and interest | |||||
income | 11,114 | 6,727 | 709 | (23) | 18,527 |
Interest expense | (75) | (74) | - | 23 | (126) |
Share of results of joint | |||||
ventures | 4 | 17,427 | - | - | 17,431 |
Profit before tax | 589,413 | 108,918 | 180 | - | 698,511 |
Taxation | (139,714) | (22,275) | (31) | - | (162,020) |
Profit after tax | 449,699 | 86,643 | 149 | - | 536,491 |
Assets: | |||||
Segment assets | 2,449,499 | 713,876 | 51,012 | - | 3,214,387 |
Investment in an | |||||
associated company | - | - | 50 | - | 50 |
Investment in joint | |||||
ventures | (12) | 81,945 | - | - | 81,933 |
Consolidated assets | 3,296,370 | ||||
Consolidated liabilities | 349,272 | 47,891 | 36 | - | 397,199 |
United Plantations Berhad Third Quarter Report 2024 7/16
United Plantations Berhad
Notes To The Interim Financial Report
9 months ended 30 September 2023
Other | |||||
(RM'000) | Plantations | Refining | Segments | Elimination | Total |
Segment Revenue: | |||||
External sales | 533,375 | 936,844 | - | - | 1,470,219 |
Inter-segment sales | 418,658 | - | - | (418,658) | - |
952,033 | 936,844 | - | (418,658) | 1,470,219 | |
Segment Results: | |||||
Operating profit/(loss) | 523,595 | 118,745 | (255) | - | 642,085 |
Investment and interest | |||||
income | 10,732 | 8,482 | 313 | (29) | 19,498 |
Interest expense | (543) | (30) | - | 29 | (544) |
Share of results of joint | |||||
ventures | (4) | 2,085 | - | - | 2,081 |
Profit before tax | 533,780 | 129,282 | 58 | - | 663,120 |
Taxation | (122,958) | (31,007) | 7 | - | (153,958) |
Profit after tax | 410,822 | 98,275 | 65 | - | 509,162 |
Assets: | |||||
Segment assets | 2,552,209 | 771,505 | 6,107 | - | 3,329,821 |
Investment in an | |||||
associated company | - | - | 50 | - | 50 |
Investment in joint | |||||
ventures | (5) | 55,586 | - | - | 55,581 |
Consolidated assets | 3,385,452 | ||||
Consolidated liabilities | 319,203 | 68,081 | 36 | - | 387,320 |
A9) VALUATION OF PROPERTY, PLANT AND EQUIPMENT
The valuations of land and buildings have been brought forward without amendment from the financial statements for the year ended 31 December 2023.
A10) EVENTS AFTER THE BALANCE SHEET DATE
There were no material events after the balance sheet date.
A11) CHANGES IN THE COMPOSITION OF THE GROUP
There were no significant changes in the composition of the Group for the period including business combination, acquisition or disposal of subsidiaries and long-term investments, restructuring and discontinuing operations.
United Plantations Berhad Third Quarter Report 2024 8/16
United Plantations Berhad
Notes To The Interim Financial Report
A12) CONTINGENT LIABILITIES AND CONTINGENT ASSETS
There were no contingent liabilities or contingent assets as at 13 November 2024.
B1) DIRECTORS' ANALYSIS OF THE GROUP'S PERFORMANCE
FOR 9 MONTHS ENDED 30 SEPTEMBER 2024
The Group's revenue for the current period at RM1,570.5 million was higher by 6.8% as compared to RM1,470.2 million recorded in the corresponding period, due to the increases in revenues for the plantation and refinery segments in the current period mainly as a result of higher CPO and PK prices.
The Group's profit before tax at RM698.5 million for the current period was higher by 5.3% as compared to RM663.1 million in the corresponding period mainly due to higher contribution from the plantation segment. The analysis of the performance in accordance with the segments is as follows:
Plantations
The revenue from the major segment of the Group in the current period, despite lower production, was 4.7% higher when compared to the corresponding period due to higher average CPO and PK prices which at RM4,080 and RM2,310 were 3.9% and 17.4% higher respectively than the corresponding period. Group CPO and PK production were lower by 1.9% and 8.0% respectively when compared to the corresponding period.
The average selling prices of CPO and PK for the current and corresponding periods were as shown below.
September 2024 | September 2023 | ||
Countries | Products | Current Period | Corresponding Period |
(RM/MT) | (RM/MT) | ||
Malaysia | CPO | 4,178 | 4,063 |
Indonesia | CPO | 3,556 | 3,312 |
Average | CPO | 4,080 | 3,927 |
Malaysia | PK | 2,341 | 2,052 |
Indonesia | PK | 2,162 | 1,607 |
Average | PK | 2,310 | 1,968 |
CPO production cost was 10.0% lower than the corresponding period, mainly because of lower manuring cost in the current period. However PK production cost was 6.0% higher in the current period.
The better selling prices coupled with lower cost of production of CPO resulted in a 10.4% increase in profit before tax when compared with the corresponding period.
CPO windfall tax incurred at RM23.2 million was 21.2% higher than the corresponding period as a result of higher average MPOB price.
Group net interest income at RM18.5 million was 5.0% lower than RM19.5 million recorded in the corresponding period due to lower deposits in the current period after the payments of RM331.8 million interim dividends in December 2023 and the final dividends of RM456.3 million in May 2024.
United Plantations Berhad Third Quarter Report 2024 9/16