KUCHING: Ta Ann Holdings Bhd has chalked up sharply higher group revenue of RM432.6 million in second quarter ended June 30, 2025 (2Q2025) as compared to RM366.7 million in 2Q2024, boosted by significantly higher sales volume of export logs and crude palm oil (CPO).
The expanded revenue drove group net profit to RM54.3 million from RM48.7 million.
The company’s earnings per share was beefed up to 12.32sen from 11.06sen, and it declared an interim dividend of 10sen per share.
In the current quarter under review, Ta Ann said the sales volume of export logs jumped by 30 per cent while the sales volume of CPO climbed by 15 per cent.
Both products recorded a seven per cent increase in average selling prices.
“During the current quarter, the group recognised a gain of RM10.63 million from changes in the fair value of biological assets compared to a gain of RM19.91 million in the corresponding quarter of the previous year,” the company said in explanatory notes to its financial results.
The 2Q2025 financial results were an improvement from that of 1Q2025 when Ta Ann group recorded lower revenue of RM407 million (2Q2025:RM432.6 million) and pre-tax profit of RM72.92 million (RM79.8 million).
The improved performance was mainly driven by higher sales volume of plywood products (+69%), export logs (+59%), CPO (+17%) and FFB (+8%).
In first half of 2025 (IH2025), Ta Ann posted stronger earnings, with group net profit of RM95.95 million (1H2024:RM91.96 million) as revenue shot up to RM839.6 million (RM719.2 million) or an increase of RM120.4 million.
The oil palm segment generated significantly higher revenue of RM762.9 million (1H2024:RM610.6 million) but the revenue of the timber products segment shrank considerably to RM74.8 million (RM106.6 million) while the other segments revenue was flat at RM1.91 million.
“Higher average selling prices of CPO and FFB, which increased by 17 per cent and 14 per cent respectively, contributed to the increase in revenue and profit.
“The group had recognised a gain from the changes in the fair value of the biological assets amounting to RM11.08 million during the current period under review as compared to a gain of RM28.31 million in the preceding corresponding period,” said Ta Ann.
Commenting on prospects for the current financial year ending December 31, 2025, Ta Ann said the group’s timber and plywood divisions had achieved strong performance in productivity and production efficiency, supported by favourable weather and a stable resource supply.
Timber prices have established while the broader commodity markets are showing positive signs of recovery.
In the plantation segment, the company said CPO prices reached RM4,379 per tonne of August 15, 2025, driven by supply chain disruptions, stronger biodiesel mandates and tighter soybean availability.
“Trade shifts and labour shortages in key markets and uncertainty while slower recovery in other commodities continues to support CPO demand.
With the peak crop season approaching, production is expected to improve, supported by sustained agronomic practices,” it added.
Ta Ann said amid on-going global market uncertainties, the group remains focused on prudent cost management, resource optimisation, and sustainability-led initiatives to reinforce long-term resilience and competitiveness.
