PINEHILL PACIFIC BERHAD: Navigating Towards Recovery with Improved Q3 FY2025 Results
Greetings, fellow investors and market watchers! Today, we’re diving deep into the latest financial report from PINEHILL PACIFIC BERHAD for the third quarter ended 31 March 2025. This report offers a glimpse into the company’s ongoing journey, particularly as it works through its regularisation plan as an “Affected Listed Issuer.” While the journey is still challenging, the numbers reveal some encouraging signs of progress, especially in revenue growth and a notable reduction in losses. Let’s break down the key takeaways and see what this means for the company’s future.
Core Data Highlights: Signs of Improvement Amidst Challenges
Revenue Growth: A Step Forward
PINEHILL PACIFIC BERHAD has shown promising growth in its top-line figures. For the current quarter, revenue saw a significant increase, demonstrating improved operational performance primarily driven by its Indonesian plantation segment.
Current Quarter (3 Months Ended 31 March 2025)
Revenue: RM346,000
Preceding Year Corresponding Quarter (3 Months Ended 31 March 2024)
Revenue: RM182,000
This impressive 89% increase in quarterly revenue was primarily fueled by a 77% higher production of Fresh Fruit Bunches (FFB) and an 8% increase in average selling prices within Indonesia. Looking at the cumulative nine-month period, the trend continues positively:
Current Cumulative Quarter (9 Months Ended 31 March 2025)
Revenue: RM1,246,000
Preceding Year Corresponding Cumulative Quarter (9 Months Ended 31 March 2024)
Revenue: RM836,000
The 49% growth in cumulative revenue was similarly driven by a 24% higher FFB volume and a 20% increase in average selling prices in Indonesia.
Narrowing Losses: A Positive Trend
Despite remaining in a loss position, the company has made strides in reducing its losses, which is a critical step towards profitability. This indicates better cost management and the positive impact of increased sales.
Current Quarter (3 Months Ended 31 March 2025)
Loss After Tax: RM(2,530,000)
Loss Per Share: (1.34) sen
Preceding Year Corresponding Quarter (3 Months Ended 31 March 2024)
Loss After Tax: RM(3,029,000)
Loss Per Share: (1.72) sen
The loss after tax for the quarter significantly reduced by RM0.50 million, thanks to the increased sales and a RM0.39 million reduction in operating expenses. For the nine-month period, the trend of reduced losses continues:
Current Cumulative Quarter (9 Months Ended 31 March 2025)
Loss After Tax: RM(7,962,000)
Loss Per Share: (4.25) sen
Preceding Year Corresponding Cumulative Quarter (9 Months Ended 31 March 2024)
Loss After Tax: RM(8,539,000)
Loss Per Share: (4.55) sen
The cumulative loss after tax decreased by RM0.58 million compared to the previous year, primarily attributable to the increase in sales.
Balance Sheet Snapshot: Managing Resources
As of 31 March 2025, PINEHILL PACIFIC BERHAD’s financial position reflects ongoing asset management and liability reduction. While total assets and equity saw a slight decline, cash and bank balances increased, indicating improved liquidity.
| Balance Sheet Item | As at 31 March 2025 (RM’000) | As at 30 June 2024 (RM’000) | Change (RM’000) |
|---|---|---|---|
| Total Assets | 149,861 | 162,622 | (12,761) |
| Total Equity | 143,954 | 155,826 | (11,872) |
| Net Assets Per Share (RM) | 1.06 | 1.14 | (0.08) |
| Short Term Deposits | 67,398 | 78,751 | (11,353) |
| Cash and Bank Balances | 721 | 251 | 470 |
| Total Liabilities | 5,907 | 6,796 | (889) |
The reduction in short-term deposits suggests a strategic reallocation of funds, while the increase in cash and bank balances is a positive sign for immediate liquidity. The decrease in total liabilities is also a healthy indicator of debt management.
Cash Flow: Navigating Operations and Investments
The company’s cash flow statement for the nine-month period shows an improvement in cash used in operating activities, though net cash generated from investing activities saw a decrease.
Current Cumulative Quarter (9 Months Ended 31 March 2025)
Net Cash Used in Operating Activities: RM(5,243,000)
Net Cash Generated from Investing Activities: RM5,999,000
Net Increase in Cash and Cash Equivalents: RM735,000
Preceding Year Corresponding Cumulative Quarter (9 Months Ended 31 March 2024)
Net Cash Used in Operating Activities: RM(5,953,000)
Net Cash Generated from Investing Activities: RM7,139,000
Net Increase in Cash and Cash Equivalents: RM1,173,000
The reduction in cash used in operating activities indicates a more efficient use of funds within the company’s core business. The decrease in cash generated from investing activities is mainly due to a higher additional right-of-use assets (RM5.29 million compared to RM0.89 million last year), despite significant net placement of short-term investments (RM11.35 million).
Navigating the Palm Oil Landscape: Challenges and Strategic Moves
PINEHILL PACIFIC BERHAD operates within a dynamic palm oil industry, particularly in Indonesia, which presents both opportunities and challenges.
Industry Trends and Economic Outlook
The Indonesian palm oil sector has seen some fluctuations. The Indonesian Palm Oil Association (IPOA) reported a 9.7% drop in CPO production in January 2025 compared to January 2024, alongside a 14.45% decrease in total palm oil consumption (January 2025 vs December 2024), with significant drops in food and biodiesel categories.
However, a recent decision by Indonesia to increase its CPO export levy from 7.5% to 10% (effective May 17, 2025) is expected to tighten supply and potentially support current CPO prices. On the broader economic front, the IMF has slightly downgraded Indonesia’s economic growth estimate for 2025 to 4.7% from 5.1%, although Indonesia’s Finance Minister remains optimistic about achieving around 5% growth.
Company Strategy and Outlook
In response to the global economic slowdown and industry dynamics, PINEHILL PACIFIC BERHAD is adopting a cautious approach to spending while focusing on improving efficiency in its Indonesian operations. A key initiative is the ongoing rehabilitation program for its palm oil estates in West Kalimantan, Indonesia, which is projected to be completed by December 2025. This program is expected to gradually improve FFB yield, leading to higher revenue and reduced losses.
The company is also actively working to regularise its status as an “Affected Listed Issuer.” They have received an Extension of Time (EOT) until August 6, 2025, to submit their regularisation plan for approval to Bursa Malaysia Securities Berhad. This is a crucial step for the company’s long-term stability and growth.
However, the success of these strategies is subject to several factors, including the company’s ability to recruit and retain sufficient skilled workers and the prevalence of favourable weather conditions, which are critical for plantation operations.
Summary and
PINEHILL PACIFIC BERHAD’s Q3 FY2025 report showcases a company making steady, albeit challenging, progress towards recovery. The significant increase in revenue and the notable reduction in losses, both for the quarter and the cumulative nine-month period, are positive indicators of operational improvements, particularly in their core plantation business in Indonesia. The ongoing rehabilitation program is a strategic cornerstone, promising future yield improvements and further loss reduction. While the company still faces hurdles related to industry dynamics and its “Affected Listed Issuer” status, the management’s focus on efficiency and regularisation efforts provides a clear path forward.
Key risk points to consider include:
- Fluctuations in CPO production and consumption, which directly impact revenue.
- Changes in CPO export levies and global commodity prices.
- The broader Indonesian economic growth outlook.
- Operational challenges such as securing and retaining skilled labor.
- Vulnerability to adverse weather conditions affecting FFB yield.
- The successful execution and approval of the regularisation plan to address its “Affected Listed Issuer” status.
Overall, PINEHILL PACIFIC BERHAD appears to be on a trajectory of gradual improvement, driven by strategic operational enhancements and a clear commitment to addressing its financial standing. Investors will be keen to monitor the progress of their rehabilitation program and the outcome of their regularisation plan.
From my perspective as a blogger observing the Malaysian market, PINEHILL PACIFIC BERHAD’s latest report, while still showing losses, reflects a determined effort to turn the tide. The improvements in revenue and the narrowing of losses are tangible results of their strategic focus on the Indonesian plantation operations. The commitment to the rehabilitation program and the active pursuit of regularisation are vital steps that demonstrate a clear vision for the future. It’s a long road, but the direction seems positive.
What are your thoughts on PINEHILL PACIFIC BERHAD’s performance this quarter? Do you believe the company can maintain this positive momentum and successfully navigate its challenges in the coming years? Share your insights and perspectives in the comments section below!
For more in-depth analyses of Malaysian companies and market trends, be sure to check out our other articles.
