Genting Plantation registered a year-on-year decline in revenue for 3Q 2024 and YTD 2024, primarily due to lower sales volume in the Downstream Manufacturing segment, partly mitigated by higher palm product prices. For the current quarter, revenue was at RM718 million slightly lower compared to RM775 million recorded in Q3FY23, profit after tax was at RM83 million compared to RM80 million in the preceding years quarter,
The Group's FFB production in 3Q 2024 and YTD 2024 was lower year-on-year, mainly due to adverse weather conditions and low cropping trend. Additionally, the ongoing replanting program in the Group's Malaysian estates led to further decrease in production.
The Plantation segment's EBITDA for 3Q 2024 was lower year-on-year owing to lower sales volume of palm products leading to higher inventory levels. Meanwhile, EBITDA for YTD 2024 was higher year-on-year on the back of higher palm product prices, which more than compensated for the lower FFB production.
EBITDA for Property segment declined marginally year-on-year in 3Q 2024 due to higher operating expenses. Notwithstanding higher revenue in YTD 2024, EBITDA for the Property segment was lower year-on-year on account of higher gain on disposal of investment properties recorded in the corresponding period of the previous year.
The AgTech segment posted lower year-on-year losses for 3Q 2024 and YTD 2024 with increased contribution from its biofertiliser and planting materials. The Downstream Manufacturing segment recorded higher year-on-year EBITDA for 3Q 2024
and YTD 2024 attributable to improved margins.
The Group's prospects for the rest of the year will track the performance of its mainstay Plantation segment, which is in turn dependent principally on the movements in palm products prices and the Group's FFB production.
The Group expects palm oil prices for the immediate term to be supported by concerns over tightening global palm oil supply amidst the anticipated strong festive-driven demand in the first quarter of 2025 as well as the anticipated increase in Indonesia's biodiesel blending mandate from B35 to B40.
For the Property segment, the Group will continue to focus on diversity in its property offerings catering for the broader based market. The Premium Outlets is also continuously improving its tenant portfolio to elevate clientele experience and satisfaction along with value-enhancing additions. Meanwhile, it added the construction of Jakarta Premium Outlets is progressing as scheduled, with operations expected to commence in the first half of 2025.
The AgTech segment will focus on expanding market adoption of its planting materials and biofertilisers, while developing innovative solutions to enhance the Group's agri-business.
The outlook of the Downstream Manufacturing segment is expected to remain challenging, given the stiff competition from its Indonesian counterparts following recent changes in Indonesian export levies and overcapacity of refineries in Indonesia. This challenge is further compounded by the limited demand for palm-based biodiesel in export markets.
