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TH Plantations profit falls 50pc

February 26, 2014

KUALA LUMPUR: TH Plantations Bhd's net profit slumped by more than 50 per cent to RM63.11 million for the year ended December 31 2013, compared with RM156.55 million a year ago.

Chief executive officer Datuk Zainal Azwar Zainal Aminuddin attributed the lower profit mainly to impacts from recognition of higher amortisation and depreciation expenses.

"The recognition of higher amortisation expenses arose from the acquisitions the group made in 2012 and last year," he said in a statement yesterday.

"The group also incurred a 66 per cent increase in interest expense due to its borrowings to fund these acquisitions."

The group, however, registered higher revenue of RM469.95 million, up 25 per cent from RM375.85 million recorded in 2012.

He said the higher revenue was driven by 49 per cent growth in fresh fruit bunches (FFB) and 11 per cent improvement in FFB yield as well as the consequent 66 per cent growth in crude palm oil production.

The higher production was a result of acquisitions made by the group in the two years, which boosted its landbank by almost 150 per cent to about 98,000ha.

To diversify its income stream, the group has earmarked about 14,000ha for the development of rubber plantations and is exploring going downstream by 2016.

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Source: Business Times (Malaysia)

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