KUCHING: Sarawak Plantation Bhd (SPB) posted a marginal rise in group net profit to RM31.12 million in the third quarter ended Sept 30, 2025 (3Q2025), compared with RM31.07 million a year earlier, despite a slight dip in group revenue to RM139.7 million from RM141.9 million.
Earnings per share improved to 11.15 sen from 11.13 sen, and the company declared an interim dividend of 15 sen per share, unchanged from 3Q2024.
For the quarter, estate operations generated RM72.6 million in revenue and RM25.6 million in pre-tax profit, while palm oil mill operations contributed RM124.7 million in revenue and RM5.4 million in pre-tax profit. The oil palm division accounted for 99.8 per cent of group revenue.
Year-on-year, oil palm operations recorded RM9.4 million lower revenue (3Q2024: RM148.8 million), mainly due to a 14 per cent decline in crude palm oil (CPO) sales volume and a 15.8 per cent drop in palm kernel (PK) sales volume, despite higher realised selling prices for both — up 5.8 per cent for CPO and 29.5 per cent for PK.
Group pre-tax profit fell to RM36.3 million from RM41.8 million a year earlier, following a decrease in operating profit to RM29.4 million (3Q2024: RM32.5 million), attributed to weaker sales volumes. Compared with the preceding quarter (2Q2025), pre-tax profit was slightly lower than RM36.8 million due to smaller fair value gains on biological assets.
For the nine-month period (9M2025), SPB’s net profit rose to RM80.6 million from RM75.8 million, although revenue eased to RM406.2 million (9M2024: RM407.9 million).
“During the current financial period, estate operation recorded a segment revenue and profit of RM204.1 million and RM74.6 million respectively whereas mill operation recorded segment revenue and profit of RM367 million and RM16.1 million respectively,” SPB said.
The RM1.9 million drop in the oil palm division’s revenue (9M2024: RM407.2 million vs 9M2025: RM405.3 million) was due to lower sales volumes. “Average selling prices of CPO and PK had increased approximately by 8.9 per cent and 44.1 per cent respectively while sale volumes of CPO and PK had decreased by approximately 13 per cent and 14.7 per cent respectively,” it said. Operating profit before tax improved to RM82.9 million from RM72.5 million previously.
On outlook, SPB said fresh fruit bunches (FFB) production in 3Q2025 “generally lagged behind the past year’s trend, indicating a delay in the usual peak crop season.”
“Despite a possible shift of the peak crop season into 4Q2025, the outlook for CPO price remains cautiously positive, supported by resilient demand and biodiesel policies in the key markets. The group reaffirms its strategic priorities to continue to focus on enhancing productivity and operational efficiency. Cost efficiency remains a core focus and the group continues to exercise prudence in cash flow management to maintain its financial resilience.
“Barring any unforeseen circumstances, the board of directors is confident of the improved production performance for the financial year and, subject to a sustainable CPO price, anticipates achieving better financial results,” SPB added.
The group also noted that global economic conditions remain weighed down by “potential escalation of trade restrictions, rising input cost pressures, supply chain disruptions and on-going geopolitical tension.”
Meanwhile, SPB announced the appointment of Iswandi Ayub, 38, as group chief executive officer (CEO) effective Jan 1, 2026. Iswandi, the grandnephew of executive chairman Datuk Amar Abdul Hamed Sepawi, has served as SPB’s chief operating officer since 2018.
A Massey University graduate in chemical and nanotechnology engineering, Iswandi joined SPB as a trainee at the Niah palm oil mill in 2012, later becoming a research executive in 2013. He established the group’s strategic innovation centre in 2014 and was appointed acting head of plantation operations in 2017.
