IOI Corp records strong earnings in 2Q18
KUALA LUMPUR: IOI Corp Bhd’s net profit soared to RM603.10 million in the second quarter ended Dec 31, 2017 (2Q18) from RM26.60 million a year earlier.
The group attributed its performance to net foreign currency translation gain on foreign currency denominated borrowings and fair value gain on derivative financial instruments from its resourcebased manufacturing segment.
Revenue for the quarter, however, eased to RM2.39 billion from RM2.5 billion yearon-year, while earnings per share surged to 9.48 sen from 0.25 sen previously.
Profit from discontinued operations also declined to RM96.6 million for 2Q18 compared with RM115.5 million in 2Q17.
It said the discontinued operations comprised resource-based manufacturing businesses, pending the divestment of a 70 per cent equity interest in Loders Croklaan Group BV, which the group expects to be completed in 3Q18.
“The reduction of earnings arising from this divestment will be partly offset by the savings in interest expense from the reduction in borrowings and interest income from the balance of divestment proceeds, pending new investment opportunities,” added IOI Corp.
Meanwhile, the group expects its plantation segment’s performance to be positive over the next three months, in line with the resilient crude palm oil price, and the continued recovery of fresh fruit bunch production from the low production in the previous financial year.
Moving forward, IOI Corp said it expects to continue its satisfactory performance in the financial year ending June 30, 2018. — Bernama