Kuala lumpur: TH Plantations Bhd (THP) has reported a net profit increase to RM107.49 million for the financial year ended December 31, 2025, up from RM75.17 million the previous year. In a filing with Bursa Malaysia, THP, the plantation arm of Lembaga Tabung Haji, attributed the improved performance to stronger operating results and enhanced margins driven by higher average selling prices.
According to BERNAMA News Agency, the rise in profit was also linked to disciplined cost management and the group's low-hanging-fruit strategy. Revenue for the year rose to RM961.23 million from RM901.67 million in FY2024. This increase was driven by higher average realised prices across all products, including a 3.51% rise in crude palm oil (CPO), a 29.20% increase in palm kernel (PK), and a 4.99% growth in fresh fruit bunch (FFB).
In the fourth quarter of FY2025, THP posted a net profit of RM35.56 million, up from RM30.18 million in the corresponding quarter of the previous year. Revenue for the quarter increased to RM302.52 million from RM294.35 million recorded in 4Q FY2024. The company attributed the higher quarterly net profit to improved operating margins from increased revenue and a RM20.79 million fair value gain on forestry. The higher 4Q FY2025 revenue was mainly due to increased sales volumes of CPO, PK, and FFB.
Looking forward, THP expects its financial performance for FY2026 to remain stable amid global economic uncertainties, labour dynamics, and price volatility. The company anticipates palm oil prices to stay firm in the near term, supported by steady demand and disciplined supply conditions. However, competition from other vegetable oils and broader macroeconomic developments may influence market dynamics.
THP plans to continue prioritising yield enhancement programmes, cost optimisation initiatives, sustainability and ESG compliance, and prudent capital management. These efforts aim to sustain earnings quality, reinforce operational resilience, and enhance long-term shareholder value. The group has declared a final single-tier ordinary dividend of three sen per share for FY2025, payable on April 30, 2026.