KUALA LUMPUR (May 30): Far East Holdings Bhd (KL:FAREAST) reported a 67% increase in net profit for the first quarter, supported by higher palm oil prices and improved fresh fruit bunches (FFB) processing volumes.
The net profit for the three months ended March 31, 2025 (1QFY2025) rose to RM47.93 million from RM28.7 million a year earlier, according to the company’s filing with Bursa Malaysia on Friday. Earnings per share increased to 8.07 sen from 4.83 sen.
Quarterly revenue increased 41.53% to RM205.94 million from RM145.51 million in 1QFY2024.
No dividend was declared for the quarter.
The group said that the improved financial performance was primarily driven by higher average prices of crude palm oil and palm kernel, which rose by 18% and 63% year-on-year to RM4,730 and RM3,632 per tonne, respectively.
This was further supported by a 36% increase in FFB processed by the group’s palm oil mills amounting to an additional 40,495 tonnes.
Looking ahead, Far East Holdings noted that barring any unforeseen developments, CPO and palm kernel prices are expected to remain stable for the FY2025.
However, FFB production is projected to be lower compared to FY2024, which could temper overall performance. The group added that ongoing weather-related disruptions may continue to pose operational challenges.
Far East shares closed one sen or 0.3% lower at RM3.59 on Friday, valuing the group at RM2.13 billion. Year to date, the stock has retreated 1.64%.