KUALA LUMPUR: Johor Plantations Group Bhd (JPG) reported a net profit of RM100.32 million for the third quarter ended Sept 30, 2026 (Q3 FY26), representing a 5.45 per cent decline from RM106.04 million in the corresponding quarter last year.
Despite the year-on-year moderation, the group demonstrated a robust sequential recovery, with net profit surging 96 per cent quarter-on-quarter from the RM51.2 million posted in the immediate preceding quarter.
According to the group’s financial statements, revenue for Q3 FY26 stood at RM450.72 million, a 9.2 per cent contraction from RM496.15 million a year ago. However, against the preceding quarter, revenue grew by 8.4 per cent from RM415.84 million.
The revenue decline was largely attributed to lower delivery volumes, with crude palm oil (CPO) and palm kernel (PK) deliveries falling by 15.9 per cent and 10.4 per cent, respectively.
This drop in volume was partially offset by stronger selling prices, with the average CPO selling price 6.5 per cent higher in Q3 FY26 at RM4,683 per tonne, compared with in Q3 FY25. Similarly, the average PK selling price rose by 6.6 per cent to RM3,747 per tonne.
The group faced rising operational expenses during the quarter, with internal CPO cost of production increasing by 13.5 per cent from a year ago, to RM2,526 per tonne.
However, the impressive quarterly profit rebound was heavily driven by a 35.6 per cent surge in fresh fruit bunch (FFB) production, which reached 292,352 tonnes in line with the seasonal peak crop cycle.
This higher output allowed fixed costs to be spread over a larger volume, effectively lowering the internal CPO cost of production by 9.4 per cent sequentially from RM2,788 per tonne.
For the cumulative nine-month period, JPG’s net profit contracted by 21.3 per cent to RM201.93 million, driven by higher production and operating costs, alongside lower finance income. Its revenue slipped 0.9 per cent during the period to RM1.22 billion.
The board of directors approved and declared a third interim single-tier dividend of 1.50 sen per share for the financial year ending Dec 31, 2026. The dividend, totaling approximately RM37.38 million, will be payable on Dec 10.
Looking ahead to the final quarter of 2026, JPG anticipates CPO prices to remain broadly range-bound.
The group noted that while biodiesel demand and seasonal consumption will provide support, elevated inventory levels may constrain significant price upside.
“Prolonged dry conditions and the potential lagged effects of El Niño on yields remain key uncertainties affecting the production outlook,” said JPG.
Indonesia’s B50 biodiesel programme remains a structural demand driver, though its impact will depend on domestic production and consumption trends.
The group also acknowledged impending cost pressures from the higher minimum wage, which is expected to increase labour costs across the plantation sector.
In response, JPG remains focused on improving productivity, accelerating mechanisation, and maintaining strict cost discipline to mitigate these pressures while advancing its strategic growth initiatives.