IOI Corp posts record earnings

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22-08-2007

by Lee Yu Tang

KUALA LUMPUR: IOI Corp Bhd has recorded its highest earnings ever with a net profit of RM1.48 billion for the financial year ended June 30, 2007 (FY07), buoyed by record earnings from the palm oil and property business segments.

Announcing the results yesterday, it said the FY07 net profit of RM1.48 billion was 78.8% above FY06’s net profit of RM829 million. Pre-tax profit rose 73% to RM1.99 billion from RM1.15 billion.

Revenue rose 46.5% to RM8.95 billion from RM6.11 billion. Earnings per share doubled to 24.13 sen from 14.51 sen mainly due to higher volume from the resource-based manufacturing segment and higher crude palm oil (CPO) prices.

“Plantation earnings for the current year are 46% higher than the same period last year with CPO price averaging 27% higher at RM1,759 per tonne compared with RM1,386 per tonne while fresh fruit bunches (FFB) production was about previous year’s level at 3.69 million tonnes,” it said.

The operating profit of its resource-based manufacturing business jumped 216% to RM405.4 million from RM128.3 million previously.

IOI Corp said operating profit from the property development rose from RM331.3 million to RM397.2 million.

The property investments sub-segment’s profit surged 443% to RM201.2 million from RM37 million after including a gain of RM160.7 million and restating the investment properties at fair value.

For the fourth quarter, the group’s earnings more than doubled to RM451.66 million from RM211.91 million. Revenue recorded a 54% increase to RM2.54 billion.

Meanwhile, IOI Properties Bhd’s FY07 net profit rose 22.2% to RM397 million, with the fourth quarter accounting for about 45% of the FY07 earnings after the revaluation of investment properties.

It declared a second gross interim dividend of 30 sen per share payable on Sept 18, bringing the total dividend for FY07 to 65% or 65 sen per share.

Pre-tax profit increased 30.2% to RM555.17 million in FY07 from RM426.44 million, which included a gain of RM134.9 million after revaluating its investment properties. Revenue rose 15.7% to RM704.88 million.

Excluding the gain, IOI Properties pre-tax profit rose 20% or RM70.2 million due to better sales of its commercial and high-end residential properties.

For the fourth quarter, net profit rose 143% to RM181.76 million while revenue rose 14% to RM197 million.