By Ying Xian Wong


Sime Darby Plantation's quarterly net profit tripled thanks to improvements in its upstream operation.

The plantation company said Friday that its third-quarter net profit rose to 1.21 billion ringgit ($258.6 million) from MYR396 million a year ago. It attributed the strong result to better revenue from the Malaysia upstream segment after a 38% increase in fresh fruit bunch production, supported by more harvesters at work and rehabilitation efforts.

Revenue for the period fell 11% to MYR4.77 billion, it said.

Sime Darby Plantation said commodity prices could remain volatile in the near term amid geopolitical concerns and global macroeconomic uncertainties. The El Niño weather phenomenon has also led to supply concerns, as vegetable oil production may be disrupted next year, it said.

However, the long-term outlook for vegetable oils is stable on regular food and fuel needs, the company said.

Sime Darby Plantation said it expects satisfactory performance for 2023 and continues to look toward expanding into new and existing markets, especially through its downstream division.


Write to Ying Xian Wong at yingxian.wong@wsj.com


(END) Dow Jones Newswires

11-24-23 0101ET