IOI Corp 3Q net profit tumbles following forex losses, lower plantations earnings

KUALA LUMPUR (May 22): IOI Corp Bhd’s net profit tumbled 88.12% to RM245.80 million in the third quarter ended March 31 (3QFY19), from the RM2.07 billion a year earlier, due to forex losses and lower plantations earnings.

This is despite quarterly revenue rising 8.67% to RM1.89 billion, from  RM1.74 billion previously.

Earnings per share plunged to 3.91 sen from 32.92 sen in 3QFY18, the group said in a bourse filing.

IOI attributed its lower quarterly earnings to lower operating profit and total net forex losses on foreign currency borrowings and deposits, amounting to RM26.7 million.

Excluding forex losses, the group saw a lower contribution from its plantation segment, which was mitigated by a higher contribution from the resource-based manufacturing segment.

The plantation segment saw net profit drop 55% to RM399.4 million, from RM884.8 million, due to lower crude palm oil (CPO) and palm kernel (PK) prices and lower fresh fruit bunch (FFB) production

Meanwhile, its resource-based manufacturing segment’s profit rose to  RM465.1 million, from RM299 million previously, due to higher margins from sub-segments and a share of associate results from Bunge Loders Croklan — which was taken up as discontinued operations prior to the group divesting of the unit.

For the cumulative nine months ended March 31, 2019 (9MFY19), IOI said net profit declined 80.66% to RM585.10 million, from the RM3.02 billion in the previous year's corresponding period. Revenue saw a marginal 0.56% increase to RM5.65 billion, from RM5.62 billion in 9MFY18.

IOI’s share price closed 0.24% or one sen higher at RM4.22 yesterday, with 1.10 million shares traded, giving it a market capitalisation of RM26.46 billion.

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