BLD Plantation reports RM1.70 bln revenue, RM43.1 mln profit for FYE2024

KUCHING (Sept 5): BLD Plantation Bhd (BLDP) recorded a lower revenue of approximately RM1.70 billion for the financial year ending March 3, 2024.

Its profit before tax saw a marginal decline from RM43.9 million in 2023 to RM43.1 million for FYE2024, said its executive chairman Dato Henry Lau in a statement today following its 22nd annual general meeting here.

This, he said, was mainly due to reduced sales volume and lower average product selling prices.

On that note, BLDP has declared a final single-tier dividend of 3 sen per ordinary share, where a total pay-out of RM2.805 million will be paid this Oct 24 to all existing shareholders, he added.

“The oil palm business is labour-intensive and heavily affected by weather conditions and market fluctuations.

“We take a prudent approach – conservatively, but without losing sight of the need to improve by reducing costs and increasing productivity,” said Lau.

He also highlighted that BLDP’s palm trees have grown too tall for harvesting, production has become low, hence, the company has embarked on replanting in the past two years.

“We need to be cautious of the replanting to ensure production of FFB is not affected.

“Replanting requires intensive capital, and the decision has been influenced by various factors such as market condition, the impact of war, Covid-19, supply of fertiliser and others,” he said.

During Covid-19 pandemic, BLDP encountered a major decline in workforce but the management is working to recover manpower needs, said Lau.

“Agriculture companies face several challenges, including competition with other oils, fluctuations in fuel prices, weather conditions, pests and diseases, and many other factors that may impact the prices and production of palm oil.

“Despite the company’s conservative approach, they are exploring new opportunities for growth,” Lau pointed out.

“We ask for the patience from our shareholders and stakeholders and remain committed to paying out better benefits and creating values.

“Looking forward, BLDP anticipates uncertainty in the palm oil business. The Board of Directors values the support from our shareholders, management and staff,” he added.

Emphasizing BLDP’s strategic focus on enhancing long-term sustainability and profitability through productivity enhancement and operational efficiency, Lau said: “With the evolving global trends, the company will continue to monitor the market dynamics and adapt strategies to remain resilient and thrive amidst the challenges ahead.”