Kuala lumpur: IOI Corporation Bhd (IOI Corp) reported an increase in net profit for the financial year ending June 30, 2026 (FY2026), reaching RM1.68 billion compared to RM1.52 billion in the previous year. This growth was attributed primarily to enhanced profitability in its resource-based manufacturing and plantation segments.

According to BERNAMA News Agency, the company's revenue also saw an uptick, amounting to RM11.78 billion, up from RM11.33 billion the year before, as per the group's filing with Bursa Malaysia on Friday.

The resource-based manufacturing segment of IOI Corp recorded a profit of RM348.4 million in FY2026, a significant increase from RM128.4 million in FY2025. Excluding a RM58.5 million fair value loss on derivative financial instruments, the segment's underlying profit rose by 173 percent to RM406.9 million, fueled by higher-margin contributions from its refinery and oleochemical sub-segments, along with stronger associate contributions.

Meanwhile, the plantation segment saw a profit increase of eight percent, reaching RM1.71 billion, compared to RM1.58 billion in FY2025.

Looking forward, IOI Corp anticipates crude palm oil (CPO) prices to remain strong into FY2027, driven by concerns over the El Nino weather phenomenon impacting oil palm production in Malaysia and Indonesia. The company expects a moderate single-digit percentage rise in fresh fruit bunch production in FY2027 as it approaches the final year of its seven-year replanting program in Sabah.

The group conveyed optimism about the plantation segment's financial performance in FY2027, with expectations for continued positive outcomes due to the favorable outlook for CPO prices.

Additionally, the board has declared a second interim single-tier dividend of 7.0 sen per share, payable on September 25, 2026, bringing the total declared dividend for FY2026 to 12.5 sen per share, up from 10.5 sen in FY2025.