IOI Corp expects satisfactory FY26 perfomance

PETALING JAYA: IOI Corp Bhd expects its operating and financial performance for the remaining quarters of its current financial year ending June 30, 2026 (FY26) to be resilient and satisfactory.

In a filing with Bursa Malaysia, the plantation giant noted that crude palm oil (CPO) price had risen steadily since early July 2025, climbing from around RM4,000 per tonne to RM4,500 per tonne last month, before easing slightly to below RM4,200 per tonne.

“Looking ahead, the potential onset of La Niña weather phenomenon, which could disrupt harvesting activities and output, together with the seasonal low production period from November 2025 to February 2026 and festive demand early next year, should provide a supportive environment for CPO price.

“Overall, we expect CPO price to stay above RM4,000 per tonne over the next three to four months.”

For the first quarter ended Sept 30, 2025 (1Q26), IOI Corp’s net profit dropped to RM369.4mil from RM710.7mil previously, while revenue rose to RM3.05bil from RM2.67bil a year ago.

IOI Corp said the plantation segment profit for 1Q26 of RM423.3mil was 14% higher than the profit for 1Q25 of RM370mil.

“Excluding the fair value gain on biological assets and derivative financial instruments of RM21.7mil and reversal of impairment loss on plasma receivables of RM0.4mil, the segment reported an underlying profit of RM401.2mil for 1Q26.”

The group said this was 14% higher than the underlying profit of RM353.1mil for 1Q25, due mainly to higher CPO and palm kernel prices realised, as well as higher fresh fruit bunch (FFB) production.

Going forward, IOI Corp said FFB production is projected to be higher, driven by a larger proportion of palms reaching prime age and young palms coming into maturity, despite ongoing accelerated replanting in Sabah.

“Improved estate management through mechanisation and digitalisation should further support productivity growth.

“We maintain our positive outlook that the plantation segment to deliver good financial performance in FY26.”

IOI Corp said the outlook for the refinery and commodity marketing sub-segment continues to be challenging, with sales margins to remain at very low or negative levels.

“This is primarily driven by strong competition from Indonesian refineries due to the overcapacity situation in that country,” it said.