IOI Corp net profit up 17% in 4Q, cites improved performance in resource-based manufacturing; declares seven sen dividend

KUALA LUMPUR (Aug 28): Palm oil manufacturer IOI Corporation Bhd's (KL:IOICORP) fourth-quarter net profit rose 17% year-on-year, driven by improved performance in the resource-based manufacturing segment.

According to the group’s bourse filing on Friday, net profit for the quarter ended June 30, 2026 (4QFY2026) rose to RM501 million compared with RM437 million a year earlier,

Revenue was up 3% year-on-year to RM3.041 billion from RM2.96 billion a year earlier due to higher sales volume across key specialty product lines and improved global product demand.

The group declared a second interim single-tier dividend of seven sen per share payable on Sept 25. This brings the total dividends declared for FY2026 at 12.5 sen per share, up from 10.5 sen in FY2025.

The group said that fresh fruit bunch (FFB) production in the upcoming financial year (FY2027) is expected to grow steadily, supported by an increasing number of trees reaching prime age and improved operational efficiency.

With crude palm oil (CPO) prices anticipated to remain firm, the palm oil manufacturer expects its plantation segment to perform satisfactorily in FY2027.

For the full year, net profit rose 11% to RM1.68 billion from RM1.52 billion in FY2025, driven by higher operational profits in both its plantation and resource-based manufacturing divisions. Full-year revenue rose 4% to RM11.78 billion from RM11.33 billion in FY2025, supported by higher average realised prices for crude palm oil at RM4,487 per tonne and palm kernel at RM3,716 per tonne.

CPO prices are projected to stay supported due to tight global vegetable oil supply and sustained demand from key markets, the company noted.

At the same time, the outlook for its resource-based manufacturing segment, particularly refining and oleochemical (natural chemical compounds from plant oils and animal fats) operations, remains competitive due to high feedstock costs and lingering global economic uncertainties.

IOI Corporation's stock closed one sen lower, or 0.21%, on Friday at RM4.68, giving the group a market capitalisation of RM29.414 billion.