Hap Seng’s Q2 net profit rises to RM644m

KUALA LUMPUR: Hap Seng Consolidated Bhd’s net profit increased 2.1 per cent in the second quarter (Q2) ended June 30 this year to RM644.22 million, from RM631.21 million previously.

Revenue in the same quarter jumped 16.9 per cent to RM1.53 billion, from RM1.31 billion earlier.

Hap Seng said the revenue increase was due to improved revenue contribution from all divisions, except plantation.

For the six months, Hap Seng’s net profit was 2.2 per cent lower at RM798.67 million, from RM781.71 million previously, while revenue increased 23.1 per cent to RM3.06 billion, from RM2.48 billion in the same period last year.

The company said the plantation division’s revenue in Q2 was 19 per cent lower at RM107.9 million year-on-year.

“The division was mainly impacted by lower average selling prices, and sales volume of crude palm oil (CPO) and palm kernel (PK),” it said.

Hap Seng said CPO sales volume for the current quarter was three per cent lower than the preceding year’s corresponding quarter, while PK sales volume was 15 per cent lower.

“The lower sales volumes of CPO and PK were due to lower production.

“Production of CPO and PK for the current quarter was lower by 19 per cent and 21 per cent, respectively, compared with the preceding year’s corresponding quarter.”

This was mainly due to lower fresh fruit bunches production inspite of better extraction rates of CPO and PK, it added.