KUALA LUMPUR: MHC PLANTATION []S BHD []'s earnings fell 32.4% to RM8.53 million in the third quarter ended Sept 30, 2011 from RM12.62 million a year ago, dragged by the recognition of negative goodwill of RM6.23 million.
It said on Thursday, Oct 27, the negative goodwill arose from an acquisition of additional shares in an associate a year ago. However, revenue rose 10% to RM8.59 million from RM7.82 million. Earnings per share were 6.05 sen compared with 8.97 sen.
MHC said the higher revenue was due to the higher prices of fresh fruit bunches (FFB). It noted that due to the cyclical nature of the business, third quarter was normally the peak production season.
Profitability in 3Q11 was slightly lower compared to 2Q11 due to a decrease in FFB prices by 11% despite a higher yield of 12%, it added.
For the first nine months ended Sept 30, 2011, net profit increased 33.07% to RM25.09 million from RM18.85 million a year ago. Revenue rose 36.78% to RM26.29 million from RM19.22 million.
It said on Thursday, Oct 27, the negative goodwill arose from an acquisition of additional shares in an associate a year ago. However, revenue rose 10% to RM8.59 million from RM7.82 million. Earnings per share were 6.05 sen compared with 8.97 sen.
MHC said the higher revenue was due to the higher prices of fresh fruit bunches (FFB). It noted that due to the cyclical nature of the business, third quarter was normally the peak production season.
Profitability in 3Q11 was slightly lower compared to 2Q11 due to a decrease in FFB prices by 11% despite a higher yield of 12%, it added.
For the first nine months ended Sept 30, 2011, net profit increased 33.07% to RM25.09 million from RM18.85 million a year ago. Revenue rose 36.78% to RM26.29 million from RM19.22 million.
