KUALA LUMPUR: Boustead Plantations Bhd (BPB) registered a revenue of RM1.2 billion for the financial year December 31, 2022 (FY22) from RM1.1 billion gained in FY21.
This also marked the first time BPB achieved a revenue of more than RM1 billion for two consecutive years.
In FY22, BPB achieved a profit before taxation and zakat (PBT) of RM729 million, surpassing the corresponding period last year of RM345 million.
This included the gains from the disposal of Kulai Young land, partial disposal of Bukit Mertajam land and the government land acquisition at Telok Sengat Estate, which amounted to RM459 million.
Profit after taxation and zakat (PAT) rose by 143 per cent to RM589 million. During the period, crude palm oil (CPO) realised an average price of RM5,066 per
metric tonne (MT), surpassing last year's corresponding period of RM4,341 per MT.
Palm kernel average price was also higher at RM3,156 per MT. BPB also made a significant turnaround in the fourth quarter (Q4) FY22, with revenue increasing by 10 per cent to RM264 million while profit from operations, PBT and PAT posted more than 100 per cent improvements, rising to RM29 million, RM110 million and RM84 million, respectively.
On the operational side, fresh fruit bunches (FFB) production increased to 251,715 MT in the current quarter from 227,335 MT recorded in the last quarter, generating a higher yield per MT of 3.8.
Oil extraction rate and kernel extraction rate saw marginal improvements to 20.6 per cent and 3.9 per cent, respectively.
During the year, higher collection from customers due to higher CPO prices and proceeds from the disposal of Kulai Young land strengthened overall cash flows, allowing BPB to fund its working capital internally and pare down borrowings.
As a result, BPB's debt-to-equity ratio stood at 0.29 times, improving from 31 December 2021 to 0.37 times.
Likewise, BPB's net current liabilities as of 31 December 2022 stood at RM200 million, a reduction of RM281 million from RM481 million as of 31 December 2021.
Earnings per share grew to 26.58 sen from 10.77 sen registered in FY21.
BPB acting chief executive officer Fahmy Ismail said the positive performance is shown in 2022 despite going against challenging forces, including labour shortage, higher operating costs and unpredictable weather patterns.
Expecting a stable palm oil market after a volatile 2022, Fahmy said stock levels in Malaysia and Indonesia were forecasted to improve following the increase in mature
areas, better weather conditions as well as improved labour supply.
"Capitalising on these conditions, BPB will continue to maximise productivity via various yield enhancement initiatives, including the Plantations Performance
Improvement Programmes, supported by other ongoing efforts to modernise our operations," Fahmy said.
The board has declared a fourth interim single-tier dividend of 3.3 sen per share for the year ending 31 December 2022.
The dividend will be paid on 22 March 2023 to shareholders on the register as of 8 March 2023.
This puts the total dividend declared to date at 14.45 sen, surpassing last year's total dividend of 8.35 sen.
Commending BPB's performance, Boustead Holdings Bhd (BHB) group chief executive officer Izaddeen Daud said he was confident that the positive outcome
would create momentum for BPB to chart better prospects in 2023.
BPB is one of the most experienced and established upstream oil palm plantation companies in Malaysia.
BHB, together with Lembaga Tabung Angkatan Tentera, are the major shareholders of BPB.