EVENING 5: Sime Darby Plantation 2Q earnings plunge 53%

The Edge TV

In today’s edition of Evening 5 — Sime Darby Plantations warns that challenging times will continue for the planter as its 2Q earnings plunge 53%. Meanwhile, Berjaya Group and Naza Group’s JV challenge against the MoF is set to be heard on Thursday.

Transcript

00:00 [Music]

00:04 Saimdabi Plantation said it expects FY2023 to remain challenging

00:09 as its net profit for the second quarter fell by 53% year-on-year to RM380 million

00:15 as its earnings were impacted by the lower average realized CPO and palm kernel prices.

00:20 Revenue for the quarter fell 23% year-on-year to RM4.31 billion from RM5.59 billion.

00:26 The group said its upstream segment was also affected by the marginal decline in fresh fruit bunch production

00:32 and lower oil extraction rate exacerbated by higher operating expenditure

00:37 mainly from higher fertilizer prices and labor costs.

00:41 Despite the softer numbers, the group declared a dividend of RM3.25 per share.

00:45 For its half-year report card, the planter saw its earnings shrink by 71% year-on-year to RM449 million from RM1.53 billion

00:53 while revenue for the period declined by 16% to RM8.37 billion.

00:58 Moving forward, the group said price volatility is expected to continue in the near term

01:02 as geopolitical crises and global macroeconomic conditions add to prevailing uncertainties.

01:08 As for FFP production, SDP expects to see a steady increase as the group progresses into the peak production period.

01:15 Managing Director Datuk Muhammad Helmi Othman Bashar says that CPO prices may rise to or even surpass RM4,000 per ton

01:23 in the second half due to the El Nino phenomenon from its current level of RM3,000 per ton

01:29 which he says could translate into better earnings.

01:32 SDP is also optimistic that its FFP production will improve as it continues to improve field conditions in its Malaysian operations

01:40 which it says complements the group's commitment to continue its transformational initiatives

01:45 to mechanize, automate and digitalize its operations.

01:50 (Music)

01:54 The hearing for Tan Sri Vincent Tan's Berjaya Group and Naza Group's JV's application for permission for judicial review

02:01 to challenge the Ministry of Finance, Government and SPANCO over the termination of a vehicle fleet project

02:07 has been fixed for August 24.

02:09 The JV, Cikap Urus, is 51% owned by Berjaya, 29% owned by Naza Corp and 20% owned by Tunggutun Aminah Sultan Ibrahim Ismail.

02:19 In the application, filed on April 20 via Messrs. Pierre Chuan Associates,

02:24 Cikap Urus sought leave for a declaration that the MOF and the government's decision to cancel or terminate the letter of intent

02:32 for the supply and management of a government vehicle fleet awarded to Cikap Urus via a letter dated December 11, 2019

02:39 is invalid, null and void and has no effect.

02:43 It also sought a declaration that the government and the MOF's decision to award SPANCO

02:48 the fleet project through direct negotiation is invalid, null and void and has no effect.

02:53 Pending determination of the matter, Cikap Urus is also seeking a stay of the government

02:58 and ministry's decision and damages and costs to be assessed.

03:01 PostMalaysia continued to bleed in its second quarter with its net loss widening to $27 million

03:12 from $5.25 million posted a year ago as revenue fell 10% year-on-year to $465.2 million for the same three-month period.

03:21 For the first half, the group's net loss ballooned to $54.7 million from $35.6 million previously

03:28 as revenue declined to $947.5 million from the $1 billion posted in the first half of FY 2022.

03:36 Group Chief Executive Officer Charles Brewer said that PostMalaysia operates in a very challenging environment

03:41 and says that it will continue to navigate those challenges by focusing on its variable costs,

03:47 network rationalisation and commercial work streams.

03:50 He adds that the postal carrier is fully focused on improving its financial performance,

03:54 embracing digital technology, enhancing the customer journey and championing sustainability

04:00 for a greener and cleaner future.

04:02 Going forward, Brewer says PostMalaysia is cautiously optimistic

04:06 and anticipates an improved result in FY 2023.

04:09 The Attorney-General's Chambers is said to be preparing to defend Tun Dr Madeh Mohamad

04:19 and Tan Sri Ino Mohamed Yaacob along with the government against the suit filed earlier this month

04:24 by corporate figure Tan Sri Halim Saad.

04:26 Halim claimed in his suit that he suffered losses due to efforts by the authorities to stop his bid

04:32 to take over United Engineers Malaysia, which owned prized assets such as the North-South Expressway's token session.

04:39 Sources told The Edge that the offer had been made to Noor Mohamed and to the former PM.

04:43 Noor Mohamed is said to have agreed to the AGC representing him.

04:47 The Chambers had filed to represent the duo on August 22nd as the events took place in 2001

04:53 when they were part of the government.

04:55 When contacted by The Edge, Mahadir's counsel, Rafiq Rashid Ali, confirmed that the AGC would represent the former Premier

05:01 but he would apply to the court to hold a watching brief for Mahadir.

05:05 Mahadir, in his reaction to the suit, questioned the timing and manner in which Halim filed it

05:10 as it took place just before the six state elections on August 12th.

05:14 The 98-year-old statesman said that he would contest the suit

05:17 and answer the allegations in court through his lawyers, adding that he had nothing to hide.

05:22 Case management has been fixed for September 13th.

05:25 Apex Healthcare posted a more than 14-fold rise in net profit to $329.48 million for its second quarter

05:37 from the $23.49 million it posted a year ago.

05:41 Revenue rose marginally by 2.8% to $215 million, driven by the sales of pharmaceuticals,

05:47 consumer healthcare products and medical devices to both private and public sector customers.

05:52 The group declared an interim dividend of 2.5 cent per share.

05:55 For the first half, Apex Healthcare saw a nine-fold jump in earnings to $353.77 million

06:01 from the $39.3 million in the same period last year, thanks to improved operating profit posted

06:08 by its subsidiaries and significantly increased net of tax contribution from its associated unit,

06:14 states Apex Group.

06:15 Half-year revenue grew 8.4% to $460.8 million.

06:20 Apex Healthcare expects the business environment to be more challenging in the second half

06:24 due to slow economic growth across its key markets.

06:28 However, the group says it is confident that its proven and well-paced fundamentals,

06:32 business development strategies, as well as new opportunities in consumer health,

06:37 halal certification and international markets are expected to support performance.

06:42 [MUSIC]

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