KUCHING: Weaker sales of logs and timber panels as well as fresh fruit bunches (FFB) have adversely impacted group revenue of Subur Tiasa Holdings Bhd which plunged by 29 per cent to RM70.9 million in the second quarter ended June 30, 2025 (2Q2025) against RM100.3 million in the previous year’s corresponding period.
However, despite the big drop in turnover, the Sibu-based timber/plantation company managed to return to the black with group net profit of RM3 million from loss of RM1.01 million during the same period.
This resulted in the company to improve earnings per share to 1.59sen from 0.54sen.
In the current quarter under review, the oil palm segment generated lower revenue of RM55.8 million (2Q2024:RM56.9 million), bringing down the segment pre-tax profit to RM208,000 (RM2.51 million) or down by hefty 92 per cent. FFB sales volume fell to 70,251 tonnes from 74,596 tonnes registered in 2Q2024.
The timber segment revenue dropped to RM8.2 million (RM26 million) in line with lower sales volume of logs and timber panels. However, the segment managed to cut its pre-tax loss to RM2.69 million (-RM3.02 million) as a result in reduction in operating costs, and restructuring efforts.
The others segment put up a brilliant performance as its pre-tax profit surged to RM5.4 million (RM648,000) although revenue only gone up marginally to RM6.84 million (RM6.75 million). This segment is involved in the provision of towage and transportation services, insurance services, property holding and development, manufacturing and trading of drinking water as well as pipes, repair and maintenance of motor vehicles and trading of industrial, commercial and agriculture vehicles.
In the immediate preceding quarter (1Q2025), Subur Tiasa posted higher revenue of RM86.1 million (2Q2025:RM70.9 million) but lower pre-tax profit of RM1.13 million (2Q2025:RM2.92 million).
The oil palm segment saw its revenue fell by 10 per cent to RM55.8 million (1Q2025:RM62.2 million) because of a 14 per cent decline in crude palm oil price to RM4,067 per tonne from RM4,732 per tonne.
The timber segment revenue plunged by 54 per cent to RM8.2 million (RM17.8 million) due to the lower sales volumes of logs and timber panels. But its pre-tax profit narrowed to RM2.69 million (-RM5.24 million) supported by cost rationalisation and operational restructuring.
In first six months of 2025 (6M2025), Subur Tiasa registered group net profit of RM4.42 million, a reversal from loss of RM6.2 million in 6M2024, despite drop in revenue to RM156.9 million from RM203.7 million.
The oil palm segment revenue grew to RM118 million (6M2024:RM111 million), driving pre-tax profit to RM7.8 million (RM1.83 million).
The timber segment revenue nosedived to RM26 million (RM80 million) but managed to reduce pre-tax loss to RM7.93 million (-RM8.88 million).
The other segment revenue was little change at RM12.9 million (RM12.6 million) but returned to the black with pre-tax profit of RM4.17 million (-RM604,000).
Commenting on prospects, Subur Tiasa said the group remains cautiously optimistic about the outlook of the oil palm segment in the remaining two quarters in the current financial year.
“Although the 2Q2025 performance was affected by lower CPO prices and reduced FFB sales volume, the upcoming peak crop season is expected to improve yields and boost production.
“Demand from key markets, like China and India, remains strong, supported by restocking activities and festive consumption. Palm oil continues to be price competitive compared to other vegetable oils while low inventories in Malaysia and Indonesia’s B40 biodiesel mandate are helping to support prices,” said the company.
Subur Tiasa said the group will continue to focus on cost efficiency and operational improvement to strengthen margins, and it anticipates a better performance in the next two quarters.
