IOI Corp net profit rises 26% in 4Q, finishes FY2025 strongly as palm oil prices gain

KUALA LUMPUR (Aug 28): IOI Corporation Bhd (KL:IOICORP) said on Thursday its fourth-quarter net profit rose 26% from a year earlier, thanks to foreign exchange gains and higher palm oil prices.

Net profit for the three months ended June 30, 2025 (4QFY2025) was RM436.5 million, or 7.04 sen per share, according to its exchange filing. The company booked a RM117 million gain from net foreign currency translation on foreign currency-denominated borrowings and deposits.

Revenue, meanwhile, rose 17% year-on-year to RM2.96 billion, thanks largely to higher output and higher average selling prices.

The company declared a dividend of 5.5 sen per share, with an entitlement date of Sept 17 and payable on Sept 25. Total dividends declared for the year stood at 10.5 sen per share, up from 9.5 sen per share in FY2024.

Fresh fruit bunch production in the new financial year is projected to be higher than in FY2025, driven by a larger number of trees reaching prime age and young trees coming into maturity, IOI Corp said.

Coupled with the firm crude palm oil price, “we expect the plantation segment to deliver a good financial result for FY2026”, the company said.

For the full 12 months of FY2025, net profit rose 37% to RM1.52 billion from a year earlier, thanks partly to foreign exchange translation gain of over RM284 million. Revenue for the year climbed 18% to RM11.33 billion as the selling price of crude palm oil rose to an average of RM4,332 per tonne.

Prices of the edible oil used in everything from lipstick to diesel have been rising steadily since early July 2025 to around RM4,500 per tonne currently, thanks to strong demand from key importing countries.

Coupled with Indonesia’s B40 biofuel mandate, prices should remain supported, IOI Corp said, noting that the current price discount of palm oil against that of US soy oil would also help to sustain its demand.

The outlook for the refinery and commodity marketing business, however, remains challenging, mainly due to intense competition from Indonesian refiners that benefit from the raw material price advantage under the country’s export duty policy, the company noted.

Business conditions of its oleochemical division would also be tough amid industry overcapacity and high raw material costs, IOI Corp said.

At its specialty fats segment, represented by associate Bunge Loders Croklaan, sales margin, particularly for cocoa butter equivalents, are expected to remain good. However, sales margin in its US operations may be affected by the additional tariffs on imports of palm raw material, it cautioned.

Shares of IOI Corp were a tad higher at RM3.88 on Thursday before the results announcement, giving the company a market capitalisation of over RM24 billion.