First Resources' 2019 profits dropped 25.7% to $89.1m

It was hit by softer crude palm oil prices.

First Resources posted a 25.7% decline in its net profit for 2019 at $89.1m, from $120m in 2018. The company’s full-year sales similarly fell by 2.9% to $614.9m, compared to $633.5m in 2018.

In Q4, the company’s net profit jumped 84.6% in Q4 YoY to $32m, from $17.34m. Likewise, sales grew 26.6% to $184.24m in Q4 YoY, from $145.49m.

The lower full-year net profits reflected the effects of weaker palm oil prices, partially mitigated by the higher sales volumes achieved, whilst the higher Q4 net profit was boosted by the higher production and sales volumes during the last quarter.

The weaker 2019 performance was on the back of softer crude palm oil (CPO) prices, partially offset by the higher sales volumes achieved.

In 2019, the volume of fresh fruit bunches (FFB) harvested fell 2.1% to 3,362,364 tonnes as compared to 3,435,159 tonnes in 2018. FFB yield was also lower at 17.0 tonnes per hectare in 2019, from 18.0 tonnes per hectare in 2018.

CPO production also saw a marginal decline for the year by 1.4% to 811,947 tonnes in 2019, from 823,679 tonnes in 2018.