Sime Darby Plantation announced better-than-expected earnings, with net profit rising 15%, primarily driven by sustained higher crude palm oil (CPO) prices and enhanced operational efficiencies, signaling a positive outlook for the plantation sector.
Sime Darby Plantation Bhd announced its latest quarterly results, surpassing market expectations with a 15% year-on-year increase in net profit, reaching RM385 million. This robust performance is primarily attributed to the sustained rise in crude palm oil (CPO) prices, with the average CPO price reaching RM4,200 per tonne this quarter, significantly higher than the same period last year. Furthermore, the company's efforts in cost control and operational efficiency have also yielded positive results, further supporting profit growth. Management stated that while labor shortages have eased, global economic uncertainties remain a challenge. However, given the strong global demand for edible oils and the company's investment in sustainability, Sime Darby Plantation remains optimistic about its performance in the coming quarters. The news boosted confidence in the plantation sector, with Sime Darby Plantation's shares rising 2.5% on Friday.
Share: