KUALA LUMPUR (May 25): Ta Ann Holdings Bhd’s net profit quadrupled to RM40.98 million for the first quarter ended March 31, 2021 (1QFY21), from RM10.25 million in the previous year’s corresponding quarter, in part due to higher crude palm oil (CPO) prices.
Revenue for the quarter grew 35% to RM340.62 million from RM252.6 million a year earlier.
As per usual, no dividend was declared for the first quarter.
The group attributed the spike in its net profit and revenue to higher average selling prices of CPO and fresh fruit bunches (FFB), which increased 45% and 49% respectively.
Besides that, it also recognised a profit from the changes in fair value of biological assets amounting to RM11.11 million during the quarter, compared with a loss of RM2.89 million in the previous year’s corresponding quarter.
On its prospects, Ta Ann said its full certification in compliance with statutory requirements for its timber resources has strengthened its position in the industry, amid demand for certified forest resources.
The group expects CPO prices to remain at current levels amid the surge in soya prices, and said the oil palm division will continue to be its prime revenue and profit driver.
“Barring any unforeseen circumstances, the board of directors anticipates a satisfactory financial performance for the financial year 2021,” it said.
Ta Ann fell eight sen or 2.7% to close at RM2.87, for a market capitalisation of RM1.28 billion.
