KUALA LUMPUR, May 17 — Johor Plantations Group Bhd (JPG) posted a lower net profit of RM50.35 million in the first quarter of 2026 (1Q 2026) ended March 31, 2026, compared to RM75.92 million in 1Q 2025, mainly due to lower average selling prices of crude palm oil (CPO) and palm kernel (PK) despite higher volume.
In a filing with Bursa Malaysia, it said that the lower net profit was also coupled with higher cost of sales, particularly from higher manuring, fresh fruit bunch purchases, harvesting and transportation, repair and maintenance and operating costs.
The average selling prices of CPO and PK declined by 14.3 per cent and 9.5 per cent, respectively, despite higher delivery volumes.
“Despite the softer pricing environment, JPG continued to command a price premium over Malaysian Palm Oil Board (MPOB) benchmark averages, with average CPO and PK selling prices of RM4,260 per tonne and RM3,529 per tonne respectively, exceeding MPOB averages of RM4,152 per tonne and RM3,396 per tonne respectively,” it said.
Revenue in 1Q 2026, however, increased to RM356.69 million from RM340.42 million in the previous corresponding quarter, mainly driven by higher CPO and PK sales.
“Revenue from the upstream segment decreased by 2.8 per cent to RM253.16 million in 1Q 2026, compared to RM260.37 million recorded in the corresponding quarter, while revenue from the renewable energy business and trading and support services decreased by 2.6 per cent to RM3.65 million from RM3.74 million previously.
“However, revenue from the midstream segment rose 26.4 per cent to RM113.27 million from RM89.62 million previously,” it said.
On prospects, it said geopolitical uncertainties, coupled with elevated energy prices, ongoing supply chain disruptions, and higher freight and insurance costs, continue to shape the broader operating environment.
“In this context, the group remains focused on disciplined cost management and operational execution.
“Barring any unforeseen circumstances, the group is cautiously optimistic of delivering a resilient performance for the remainder of the financial year of 2026 (FY2026),” it said.
JPG managing director Mohd Faris Adli Shukery said amid evolving geopolitical and market uncertainties, the group remained focused on operational discipline, supply chain resilience and long-term value creation.
“Our ability to consistently achieve pricing above MPOB benchmarks reflects the quality of our integrated operations and the strength of our commercial execution.
“While rising energy and logistics costs continue to influence the broader operating environment, the group is largely insulated from near-term cost pressures, having secured both pricing and supply for our 2026 fertiliser requirements through a proactive procurement strategy,” he said.
JPG has declared a first interim dividend of one sen per share for FY2026, reaffirming the group’s commitment to delivering sustainable shareholder returns. The dividend payment is June 12, 2026.
