PLANTATION (CONT'D) The Plantation Division recorded higher revenue of RM363.2 million and profit before tax of RM108.7 million for the current year as compared to the preceding year of RM352.2 million and RM82.0 million respectively, mainly due to higher average CPO and PK selling price per MT coupled with the commencement of sale of crude palm kernel oil in February 2025. From the operation perspective, FFB production declined by 5.1% to 385,718 MT (FY2024: 406,658 MT), mainly due to unfavorable weather conditions. The oil extraction rate (OER) decreased slightly to 20.7% (FY2024: 21.2%). Despite these challenges, the Group’s plantations remain strong, with 96.5% of planted areas in their prime mature stage, supporting stable long-term production. The Plantation Group maintained strong liquidity position. Cash and cash equivalents increased to RM242.3 million as at 30 September 2025 (FY2024: RM225.2 million), supported by healthy operating cash flows. The Plantation Group continues to adopt a prudent capital management approach and maintained zero net gearing as at year-end. MANAGEMENT DISCUSSION AND ANALYSIS FY2025, the Plantation Group expanded its land bank through the proposed acquisition of PT Tunas Tani Tutus (“PT Tunas”), with a land area of approximately 3,096.95 hectares, strengthening its future growth pipeline in Indonesia. In October 2025, PT Tunas received approval from the Indonesian Ministry of Law for a transition to a foreign-owned entity making it a subsidiary of the Company. The Plantation Group is optimistic of its outlook for FY2026, supported by strong market demand and positive price trend for CPO coupled with ongoing initiatives to improve operational efficiency through mechanisation, water management enhancement and digital tracking systems. The Plantation Division recorded higher revenue of RM363.2 million and profit before tax of RM108.7 million for the current year as compared to the preceding year of RM352.2 million and RM82.0 million respectively. RM363.2 MILLION Our Executive Chairman, Tan Sri Dato’ Alex Chen (fourth from left) conducting field visit at our plantation with MKHOP board members and senior management PG | 42 ANNUAL REPORT 2025 MKH BERHAD
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