TA ANN Holdings Berhad: Navigating Growth Amidst Shifting Tides in Q1 2025
Curious about how Malaysia’s diversified giants are navigating the current economic tides? TA ANN Holdings Berhad, a prominent player in the timber and oil palm sectors, has just released its first-quarter results for the financial year ending 31 March 2025. This report reveals a mixed yet resilient performance, showcasing robust growth in its core oil palm business while facing headwinds in the timber segment. The company’s impressive pre-tax profit growth and continued commitment to shareholder returns, despite a slight adjustment in dividends, are key highlights that demand a closer look.
Financial Performance Highlights: A Tale of Two Segments
TA ANN Holdings Berhad delivered a strong top-line performance in Q1 2025, with revenue climbing significantly. This growth was primarily fueled by its thriving oil palm operations, which more than offset the challenges faced by its timber division. Let’s dive into the numbers:
Q1 2025
Revenue: RM407.02 million
Gross Profit: RM101.08 million
Profit Before Tax (PBT): RM72.92 million
Profit After Tax (PAT): RM52.61 million
Profit Attributable to Owners: RM41.68 million
Basic Earnings Per Share (EPS): 9.46 sen
Net Cash from Operating Activities: RM19.84 million
Q1 2024
Revenue: RM352.41 million
Gross Profit: RM80.60 million
Profit Before Tax (PBT): RM56.83 million
Profit After Tax (PAT): RM42.60 million
Profit Attributable to Owners: RM43.25 million
Basic Earnings Per Share (EPS): 9.82 sen
Net Cash from Operating Activities: RM36.52 million
Overall, the Group’s revenue jumped by an impressive 15.5% to RM407.02 million, while Profit Before Tax surged by 28.3% to RM72.92 million compared to the corresponding quarter last year. This substantial improvement in profitability was largely driven by the robust performance of its oil palm segment.
However, it’s worth noting that while overall Profit After Tax increased, the profit attributable to owners of the Company saw a slight dip of 3.6%, alongside a marginal decrease in Basic Earnings Per Share. This was primarily due to a higher share of profit allocated to non-controlling interests during the quarter.
Cash generated from operating activities also saw a significant reduction of 45.7%, from RM36.52 million in Q1 2024 to RM19.84 million in Q1 2025, mainly influenced by changes in working capital.
Segmental Deep Dive: Oil Palm Shines, Timber Struggles
The report provides a clear picture of the differing fortunes of TA ANN’s core business segments:
Oil Palm Segment
The oil palm division was the primary growth engine for the Group. Revenue from this segment soared by 29.15% to RM377.72 million, and its Profit Before Tax surged by an even more remarkable 48.86% to RM77.81 million. This stellar performance was attributed to higher average selling prices for Crude Palm Oil (CPO) and Fresh Fruit Bunches (FFB), which increased by 28% and 21% respectively.
Timber Products Segment
In contrast, the timber products segment faced significant headwinds. Revenue from timber products plummeted by 52.17% to RM28.62 million. Consequently, the segment swung from a profit of RM4.53 million in Q1 2024 to a loss of RM5.20 million in Q1 2025. This downturn was mainly due to lower sales volumes for both export logs and plywood products, which saw declines of 50% and 48% respectively.
Financial Health: A Stable Foundation
As of 31 March 2025, TA ANN Holdings Berhad’s balance sheet reflects a stable financial position. Total assets remained largely consistent at RM2.68 billion, with a slight increase in total equity by 2.6% to RM2.09 billion. This was complemented by a healthy 8.04% reduction in total liabilities, indicating prudent financial management. Net assets per share also improved to RM4.23 from RM4.14 at the end of December 2024.
Risks and Prospects: Navigating the Future Landscape
Looking ahead, TA ANN Holdings Berhad is cautiously optimistic, balancing market opportunities with potential challenges.
Plywood Division’s Recovery
The plywood division is showing signs of recovery, with improved agility and productivity. Demand from Japan, particularly due to low inventory levels, is expected to drive this segment’s performance. This, combined with a leaner cost structure, positions the Group to maintain competitive pricing.
Oil Palm Outlook
Despite recent CPO price declines to around RM4,000 per metric tonne, influenced by US tariffs and geopolitical tensions, the Group anticipates a gradual recovery in global commodity markets following the recent trade agreement between China and the United States. Furthermore, consistent manuring practices and the use of high-yielding planting materials are expected to underpin improved CPO production performance.
Strategic Focus
TA ANN remains committed to prudent cost management, resource optimization, and sustainability-led initiatives. These strategies are crucial for strengthening the Group’s long-term resilience and competitiveness in an uncertain global market. The Board of Directors expresses confidence in delivering a satisfactory performance for the financial year ending 31 December 2025, barring any unforeseen circumstances.
Dividends: Returning Value to Shareholders
The Board of Directors has declared a first interim single-tier ordinary dividend of 10 sen per ordinary share for the financial year ending 31 December 2025. This dividend is payable on 30 June 2025. While this is a decrease from the 15 sen declared in the corresponding period of 2024, it still reflects the company’s commitment to returning value to its shareholders.
Summary and
TA ANN Holdings Berhad’s Q1 2025 results present a picture of resilience, primarily driven by the strong performance of its oil palm segment. The company successfully leveraged higher CPO and FFB prices to boost its overall revenue and pre-tax profit, even as its timber division faced significant challenges. While the reduction in dividend per share and a decrease in attributable profit to owners might raise some questions, the underlying operational strength in oil palm and the strategic focus on cost management and sustainability are positive indicators.
The company’s outlook for the remainder of the year appears cautiously optimistic, with expectations of improved CPO production and a recovery in plywood demand. However, the external environment continues to pose challenges, particularly concerning commodity price volatility.
Key points to consider moving forward include:
- The continued impact of global market uncertainties, including tariffs and geopolitical tensions, on CPO prices.
- The ability of the timber division to recover from lower sales volumes and return to profitability.
- The effectiveness of the Group’s cost management and resource optimization strategies in maintaining competitiveness.
As a blogger, my aim is to provide a clear and objective analysis of the financial report, highlighting the key takeaways for Malaysian retail investors. It is crucial to remember that this analysis is for informational purposes only and does not constitute financial advice or .
What are your thoughts on TA ANN Holdings Berhad’s performance this quarter? Do you believe their strategies will effectively navigate the ongoing market uncertainties and sustain growth in the coming quarters? Share your insights in the comments below!
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