Saturday, 18 August 2012

Bernas net profit down 60% on higher cost of imports

PETALING JAYA: Despite an increase of 12.63% in revenue, Padiberas Nasional Bhd’s (Bernas) net profit fell 60.4% in the second quarter compared with the same quarter last year due to higher cost of imported rice and operating cost.

Bernas’ revenue climbed to RM937.57mil from RM832.4mil previously. Its net profit slid 60.4% from RM63.5mil in second quarter of 2011 to RM25.12mil in the quarter under review. Meanwhile, its basic earnings per share dropped 8.16 sen to 5.34 sen quarter-on-quarter in its latest quarterly results.

For the first half of 2012 (ended June 30, 2012), its revenue increased 10.2% to RM1.83bil from RM1.66bil last year. Net profit declined 47.22% to RM62.7mil from RM118.8mil previously.

In a note accompanying its quarterly financial results to Bursa Malaysia, it said: “Rice sales increased by RM186mil to RM1.6bil compared with the previous period. This was mainly due to higher volume of 8.5% sold from 668,538 tonnes in the previous period to 725,428 tonnes this period. The imported rice contributed 63% of the rice volume sold.”

Non-rice sales had decreased by 4% mainly due to lower sales of paddy to Skim Pengilang Bumiputra compared with the previous corresponding period, it said.

In its performance review, it said the lower margin was due to the higher price of imported rice and operating cost.

As for its commentary on prospects, it said global rice fundamentals remained mostly bearish as supplies continued to exceed demand in the second quarter of 2012.

“However, Thailand’s mortgage scheme and aggressive build-up of Thai government stockpiles resulting in lower volume of rice available to the market provides underlying support to the current rice prices.

“On the weather front, concerns about the drought in the United States, the less ideal Indian southwest monsoon and the possibility of El-Nino expected in September 2012 could influence the market towards the end of 2012,” it noted.

It also noted that the financial statements for the period ended March 31 had been prepared in accordance with the requirement of MFRS 134: Interim Financial Reporting and Bursa Malaysia’s listing requirements. The financial statements are consistent with those prepared for the year ended Dec 31, 2011 except for the reconciliation of foreign exchange reserve. The cumulative foreign currency translation differences of RM3.77mil were adjusted to retained profits, it said.

As for dividends paid, a second interim dividend of 15% taxable dividend less 25% taxation on 470,401,501 ordinary shares in respect of the financial year ended Dec 31, 2011 amounting to RM52.92mil was declared on April 24, 2012 and paid on June 1, 2012.

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