KUALA LUMPUR: Ta Ann Holdings Bhd’s net profit for the third quarter (Q3) ended Sept 30, 2021 surged to RM103.29 million from RM42.77 million in the corresponding quarter of 2020.

Revenue rose to RM486.86 million from RM353.37 million previously.

In a filing with Bursa Malaysia today, the timber and plantation company said the significant increment in profit was attributed to the overall higher average selling price (ASP) of crude palm oil (CPO), fresh fruit bunches (FFB), plywood product and export logs by 62 per cent, 68 per cent, 21 per cent and 33 per cent respectively.

It said the company had also recognised a gain of RM26.09 million from the changes in the fair value of the biological assets during the current quarter under review as compared to a gain of RM1.64 million in the preceding corresponding quarter.

“The expected outlook for Q3 had come through positively. This was mainly attributed to favourable commodities prices due to global shortage of raw materials including food items, mineral resources, computer chips currently as a result of interruptions of supply chains caused by COVID-19 pandemic,” it said.

Moving forward, it said the company expected stability on the CPO, FFB and its export timber products on the back of a gradual opening up of major economies in the last quarter of 2021.

“On a positive note, the easing of government policy on the movement control in stages starting mid-October is expected to help improve Ta Ann’s manpower in both estates and mill operations. This will potentially lead to growth in FFB and CPO production,” it said.

It said barring any unforeseen circumstances, the company anticipated a record profit in terms of financial performance for the financial year 2021.

It added that the board of directors has declared a higher second interim single-tier ordinary dividend for the financial year ending Dec 31, 2021 of 20 sen per ordinary share, compared to 10 sen in the corresponding period last year, to be paid on Jan 24, 2022 to depositors whose names appear in the Record of Depositors on Jan 5, 2022.

Ta Ann’s first interim single-tier ordinary dividend of 10 sen per ordinary share, amounting to RM44.05 million, was declared on July 9, 2021 and was paid on Aug 16, 2021. – Bernama