Johor Plantation Group reported its Q1 results achieving revenue and profit before tax and zakat of RM294.91 million and RM63.04 million for the quarter ended 31 March 2024, compared to RM251.98 million and RM0.15 million respectively, recorded in the quarter ended 31 March 2023.

The company said the revenue increased by 17.0% to RM294.91 million for the for the quarter ended 31 March 2024, compared to RM251.98 million recorded in the quarter ended 31 March 2023, mainly due to increases in revenue from selling CPO and PK

During the quarter ended 31 March 2024, CPO prices traded between RM3,600/MT to RM4,500/MT. CPO prices remained high primarily due to adverse weather conditions that affected CPO production in Malaysia. As a result, palm oil inventories in Malaysia declined to 1.72 million MT as of the end March 2024, according to the Malaysian Palm Oil Board (MPOB). In the coming months, several factors may influence the CPO prices, including the production levels in Malaysia and Indonesia, weather and labour conditions, and the development of the biodiesel mandate, especially in Indonesia.

The Group is expecting a steady demand for CPO in the longer term, short-term demand may be influenced by geopolitical events such as the Russia-Ukraine War, conflicts in the Middle East, and the uncertainty in the US Fed's interest rate policy.

The global production of oilseeds, such as soybeans, is expected to be volatile amid adverse weather conditions. In Brazil, potential disruptions loom over soybean production, where floods could hamper harvesting activities. Similarly, the production of oilseed in Argentina might be disrupted by the recent strike organised by the workers' union in the middle of the harvesting period. In this uncertain external landscape, soyoil prices might remain elevated thereby lending support to CPO prices. Furthermore, global demand for vegetable oils is expected to persist as destination markets start to replenish their low stockpile reserves. Nevertheless, any sudden rise in geopolitical tensions could trigger a disruption in the global supply chain, consequently dampening the demand for vegetable oils.

Despite the uncertainties in the external environment, the Group will continue to focus on optimising its operational efficiency, especially on improving yield, mechanisation, plant efficiency and cost control. Barring any unforeseen circumstances, the Group expects the performance for the financial year to be satisfactory