CBIP quarterly net profit up 51% to Rm19mil

PETALING JAYA: CB Industrial Product Holding Bhd’s (CBIP) net profit for its first quarter ended March 31, 2021 rose 51.2% to Rm18.58mil from Rm12.29mil in the previous corresponding period, mainly due to higher contribution from its palm oil equipment and engineering segment.

In a filing with Bursa Malaysia yesterday, the company said net profit in the first quarter was also spurred by its palm oil plantations segment, as well as the improved share of results of associates and joint ventures.

Revenue in the first quarter grew to Rm157.32mil from Rm108.03mil a year earlier.

“The increase in the group’s revenue was mainly due to higher revenue generated by the refinery and palm oil plantations segments,” CBIP said.

It said the palm oil equipment and engineering segment reported higher pre-tax profit of 11%, while revenue increased marginally.

“The increase in profit was mainly due to higher project margin and lower operating expenses during the current financial period.

“The special purpose vehicles segment incurred a loss with a decrease in revenue by 32% as compared to the same financial period last year.

“The decrease in revenue was mainly due to lack of replenishment of new projects following the restriction of movement resulting from the outbreak of Covid-19 since early last year.”

Meanwhile, the palm oil plantations segment reported higher revenue and pre-tax profit for the period under review due to higher revenue generated from its palm oil milling operation, along with higher prices of palm products, said CBIP.

Additionally, the company said its refinery segment posted a lower pre-tax profit despite an increase in revenue, compared with the same financial period last year.

“The lower profit was mainly due to lower operating margin, together with higher operating expenses.”

The group said associates and joint ventures improved to a combined share of profit of Rm3.6mil from a combined loss of Rm1.5mil in the same financial period last year.

“The improvement was mainly due to higher prices of palm products during the current financial period.”