IOI Corporation (IOICORP) Q2 2025 earnings summary

Executive summary

• Revenue for the six months ended 31 December 2024 rose 23% year-over-year to RM5,639.0 million, with profit for the period up 29% to RM834.5 million and profit before tax up 31% to RM1,029.4 million.

• Q2 FY25 revenue increased by 24% year-over-year to RM2,965.8 million, but operating profit declined by 7% to RM326.5 million.

• Q2 FY25 profit before tax dropped 47% year-over-year to RM220.8 million, mainly due to significant net FX translation losses.

• The plantation segment delivered strong growth, offsetting weaker results in resource-based manufacturing.

Financial highlights

• Operating profit for the six months increased 12% year-over-year to RM691.5 million.

• Q2 FY25 earnings per share fell 67% year-over-year to 1.79 sen, but year-to-date EPS increased 29% to 13.25 sen.

• Underlying profit before tax for Q2 FY25 rose 31% year-over-year to RM504.3 million, and 19% year-to-date to RM863.4 million.

• Net assets per share increased to RM1.94 from RM1.88 at the previous year-end.

• Cash and cash equivalents at period end stood at RM1,689.3 million, down from RM2,058.3 million a year earlier.

Outlook and guidance

• CPO prices are expected to remain above RM4,200/MT in the next three months, supported by low inventory, seasonal demand, and Indonesia's biodiesel mandate.

• Plantation segment outlook remains positive due to anticipated production recovery and strong CPO prices.

• Refinery margins under pressure from Indonesian competition; cost optimisation prioritized.

• Oleochemical and specialty fats segments face challenges from US tariffs and global trade uncertainties; focus on efficiency and unaffected markets.

• Overall operating and financial performance for the remainder of FY2025 expected to be satisfactory.