KUCHING: Rimbunan Sawit Bhd has posted considerably higher revenue of RM155.5 million in second quarter ended June 30, 2025 (2Q2025) as compared to RM115.6 million a year ago, or up by RM39.9 million (34.5%), bolstered by higher sales volumes and selling prices of fresh fruit bunches (FFB) and crude palm oil (CPO).
But the revenue jump did not translate into improved earnings as group net profit had instead shrunk to RM2.75 million from RM4.03 million recorded in 2Q2024. No reason was given for the drop in earnings.
As a result, the company’s earnings per share declined to 0.13sen from 0.2sen.
In the current quarter under review, Rimbunan Sawit said the selling price of FFB climbed by 10.8 per cent, CPO by 0.3 per cent and palm kernel (PK) by 43.6 per cent.
“The sales volume of CPO and PK were higher by 40.1per cent and 34 per cent respectively than the corresponding period in 2024,” it added in explanatory notes to its financial results.
As compared to the immediate preceding quarter (1Q2025), Rimbunan Sawit reported higher after-tax profit of RM2.4 million (1Q2025:RM2.24 million) despite a marginal drop in revenue to RM155.5 million (RM156.3 million).
In 2Q2025, the group said there were decreases in selling prices of FFB (-10.8%), CPO (-15%) and PK (-7.3%).
Rimbunan Sawit returned to profitability in first half of 2025 (1H2025) with group net profit of RM3.43 million from loss of RM6.1 million in 1H2024 in tandem with a big jump in revenue to RM311.8 million (RM208.9 million) or up by RM102.9 million or 49.2 per cent.
Contributing to the improved performance was increased sales volumes and selling prices of FFB, CPO and PK. The CPO sales volume and selling price rose by 37.6 per cent and 9.7 per cent respectively while that of PK shot up by 25.6 per cent and 56.3 per cent respectively.
“In line with rising in sales volume and selling price, profit before tax surged to RM10.9 million, recovering from a loss of RM2.1 million in the corresponding period of 2024,” said the company.
Commenting on prospects, Rimbunan Sawit said this year, the Malaysian oil palm industry is expected to maintain a stable and moderately positive outlook, supported by resilient global demand for palm oil, especially from key markets, like India, China and the Middle East.
“CPO prices are likely to remain firm, averaging around RM3,800 to RM4,200 per tonne, driven by limited global edible oil supply and biofuel demand. Weather disruptions, particularly from El Nino effects, may tighten supply but also support price levels.
“However, the industry continues to face chronic labour shortages, rising operational costs and increasing pressure to meet sustainability and traceability standards, especially with EU Deforestation Regulation (EUDR) coming into effect. In response, major players are accelerating mechanisation, digitalisation and ESG compliance investment.
“Growth opportunities lie in downstream expansion, carbon credit monetisation, and better land productivity through replanting with higher-yielding clones.
“Overall, 2025 presents a year of consolidation and transition for Malaysia’s oil palm industry — balancing productivity, sustainability and profitability.”
Rimbunan Sawit’s total borrowings rose to RM240.8 million as at June 30, 2025 from RM232.2 million a year ago.
