KUCHING: Jaya Tiasa Holdings Bhd’s bottom line has been impacted by the weaker performance of its oil palm segment, dragging group net profit down by RM18.7 million to RM53.6 million in first quarter to September 30, 2025 (1Q2025) against RM72.3 million registered a year ago.
The segment’s profitability had been adversely affected by increased production cost of fresh fruit bunches (FFB) and a drop in overall sales volumes of crude palm oil (CPO) and palm Kernel (PK).
The lower earnings were recorded despite growth in group revenue to RM283.1 million from RM271.7 million recorded in 1Q2024.
The company’s earnings per share stood at 5.53sen as compared t0 7.47sen previously. In the current quarter, the oil palm segment generated revenue of RM260.1 million (1Q2024:RM253.4 million), an increase of three per cent, whereas the timber segment posted an eight per cent jump in revenue to RM19.3 million (RM17.9 million).
The others segment also did well, with revenue expanded to RM3.74 million (RM378,000).
The oil palm segment recorded a 32 per cent drop in pre-tax profit to RM78.8 million (RM115.1 million) but the timber segment narrowed its pre-tax loss to RM8.54 million (-RM11.82 million) while the others segment also reported lower pretax loss to RM167,000 (-RM1.95 million).
Jaya Tiasa blamed the lower profit to several factors — higher unit cost of production of FFB resulted from reduced production volume, and lower overall sales volume of CPO and PK despite their average selling prices had improved.
The 1Q2025 financial results came in with a big improvement over the immediate preceding quarter (4Q2024) when Jaya Tiasa group suffered net loss of RM11.89 million (1Q2025: +RM53.6 million) on lower revenue of RM250.7 million (RM260.1 million).
“The group achieved a positive financial turnaround and returned to profitability in the current quarter, supported by higher revenue compared to the immediate preceding quarter.
“The group’s revenue increased by 7 per cent in the current quarter driven by higher production volumes of FFB, CPO and PK, which lowered unit production costs and improved overall profit margins, and no fair value loss was recognised on biological assets in the current quarter,” the company said in explanatory notes to its financials.
Going forward, Jaya Tiasa expects the average CPO prices to remain relevated, driven by anticipated global supply constraints resulting from recent affirmation by the Indonesian authorities on their biodiesel mandate, coupled with strong import demand from key consuming countries and sustained growth in worldwide edible oil consumption.
“The group remains committed to optimising operational efficiency, improving productivity and exercising stringent cost control across all operations to mitigate the impact of rising input costs.
“Barring any material or unforeseen circumstances, the group expects to delivering a satisfactory financial performance for the remainder of the current financial year,” added the company.
