Johor Plantations Net Profit Slips To RM51 Mln In 2Q Due To Higher Sales Cost
KUALA LUMPUR, Aug 18 (Bernama) -- Johor Plantations Group Bhd’s (JPG) net profit fell to RM51.15 million in the second quarter ended June 30, 2026 (2Q 2026) from RM75.20 million in the same period a year ago.
It said the soft performance was mainly due to higher cost of sales, which was partially offset by higher average crude palm oil (CPO) and palm kernel (PK) selling prices.
However, the company’s revenue for the quarter under review increased by 4.4 per cent to RM415.84 million from RM398.29 million previously, driven by strong sales from the group’s crude palm oil (CPO).
“Revenue from the sale of the group's CPO increased by 6.1 per cent to RM343.04 million in 2Q 2026 from RM323.39 million in 2Q 2025 due to a higher CPO selling price. This was partially offset by a lower volume of CPO delivered
“The group’s PK sales revenue decreased by 2.1 per cent to RM71.55 million from RM73.07 million due to a lower volume of PK delivered. This was partially offset by a higher PK selling price,” it said in a stock exchange filing.
For the first half of 2026 (1H 2026), the group’s net profit dropped to RM101.50 million from RM151.12 million last year, while revenue gained 4.6 per cent to RM772.54 million, supported by higher revenue from the sale of the group's CPO.
Looking ahead, JPG expects the palm oil market to remain supported by seasonal restocking demand, Indonesia's B50 biodiesel mandate and the seasonal peak crop cycle.
“Nevertheless, the group will continue to monitor external developments, including the anticipated El Niño event, evolving geopolitical tensions in West Asia and the implementation of the European Union Deforestation Regulation (EUDR). We remain cautiously optimistic of delivering a satisfactory performance for the financial year ending Dec 31, 2026,” it added.
In a separate statement, the plantation company said it continues to focus on enhancing its upstream fundamentals through accelerated replanting, deployment of superior planting materials and ongoing estate improvement initiatives.
Managing director Mohd Faris Adli Shukery said the group continues to strengthen the foundations of the business through disciplined estate management, accelerated replanting, expansion of our external crop ecosystem and the ongoing development of Integrated Sustainable Palm Oil Complex (iSPOC). “These initiatives reinforce our integrated value chain strategy and position JPG for sustainable long-term value creation,” he added.
The group also declared a second interim dividend of 1.10 sen per share for FY2026, payable on Sept 14, 2026.
-- BERNAMA