Cepatwawasan’s Q2 2025 Earnings Soar: A Deep Dive into a Strong Quarter
Cepatwawasan Group Berhad, a prominent player in the palm oil industry, has just released its financial results for the second quarter ended June 30, 2025. The report reveals a period of impressive growth, particularly in profitability, even as the company navigates a challenging market landscape. Let’s break down the key figures and what they mean for the group moving forward.
The standout figure from this quarter is the remarkable 44% increase in Profit Before Tax, showcasing strong operational performance and efficiency gains.
Core Financial Highlights: Growth Across the Board
At a macro level, Cepatwawasan delivered a robust performance compared to the same quarter last year. The growth was primarily fueled by higher sales volumes of Crude Palm Oil (CPO) and Palm Kernel (PK), driven by increased processing of Fresh Fruit Bunches (FFB).
Revenue (Q2 2025)
RM 87.7 million
Revenue (Q2 2024)
RM 77.0 million
The 14% rise in revenue was a direct result of the company’s ability to source and process more FFB, reflecting higher crop production in the Sandakan region.
Profit Before Tax (Q2 2025)
RM 12.15 million
Profit Before Tax (Q2 2024)
RM 8.45 million
This significant 44% jump in pre-tax profit was supported by increased FFB production from its own plantations and improved margins at its oil mill.
Net Profit (Attributable to Owners) (Q2 2025)
RM 8.19 million
Net Profit (Attributable to Owners) (Q2 2024)
RM 5.61 million
Earnings Per Share (Q2 2025)
2.65 sen
Earnings Per Share (Q2 2024)
1.81 sen
The strong bottom-line performance translated directly into higher earnings for shareholders, a key indicator of the company’s profitability.
A Closer Look at Business Segments
The group’s overall success was driven by stellar results from its core Plantation and Oil Mill segments, which more than compensated for the challenges faced by the Power Plant division.
Plantation: The Star Performer
The Plantation segment was the main engine of growth this quarter. Its segment profit surged by an impressive 78%, thanks to both higher production volumes and better selling prices for FFB.
| Metric | Q2 2025 | Q2 2024 | Change |
|---|---|---|---|
| Segment Revenue | RM 22.72 million | RM 18.90 million | +20% |
| Segment Profit | RM 10.75 million | RM 6.04 million | +78% |
| FFB Production (MT) | 29,340 | 25,446 | +15% |
Oil Mill: Efficiency Pays Off
The Oil Mill segment delivered a spectacular turnaround, with profits increasing by 217%. This was achieved through higher FFB processing volume, improved operational efficiency, and stronger margins.
| Metric | Q2 2025 | Q2 2024 | Change |
|---|---|---|---|
| Segment Revenue | RM 70.70 million | RM 59.15 million | +20% |
| Segment Profit | RM 2.51 million | RM 0.79 million | +217% |
| FFB Processed (MT) | 73,249 | 65,384 | +12% |
Power Plant: Facing Headwinds
The Power Plant division faced operational challenges this quarter. Segment profit fell by 56% due to reduced power exports. This was caused by wear and tear on existing infrastructure and an unforeseen electrical failure at the Biogas Plant, which led to a temporary shutdown. The company has filed an insurance claim for the repair costs.
| Metric | Q2 2025 | Q2 2024 | Change |
|---|---|---|---|
| Segment Revenue | RM 8.64 million | RM 11.45 million | -25% |
| Segment Profit | RM 0.83 million | RM 1.86 million | -56% |
| Power Export (Mwh) | 6,935 | 11,228 | -38% |
Navigating the Future: Risks and Outlook
Looking ahead, Cepatwawasan anticipates an increase in FFB production in the second half of 2025, driven by seasonal peak yields. However, the company remains cautious due to a challenging market environment. Weaker global demand and competition from other edible oils are expected to continue putting pressure on CPO prices.
On the operational front, the commissioning of the new biomass boiler and turbine is now expected in November 2025. The Biogas Plant is projected to resume operations by late August 2025. Amid these factors, the Group remains focused on its core strategies of stringent cost control, yield optimisation, and developing non-core revenue streams to build resilience against external pressures.
Summary and Outlook
Cepatwawasan Group Berhad delivered a strong second quarter, marked by significant profit growth driven by its core plantation and oil mill operations. The company successfully capitalized on higher FFB production to boost revenue and margins. While the power plant segment is facing temporary operational issues, the overall financial health remains solid. The group’s proactive management and strategic focus on efficiency position it to navigate the uncertain market conditions ahead.
However, investors should be mindful of the potential risks:
- CPO Price Volatility: The profitability of the group is heavily dependent on global CPO prices, which are subject to fluctuations from global demand, supply dynamics, and competition.
- Operational Risks: The Power Plant division faces ongoing challenges, including the timely repair of the Biogas plant and the commissioning of new equipment, which could impact future contributions.
- Geopolitical and Market Uncertainty: Global trade policies and geopolitical tensions can create an unpredictable environment for commodity-based companies.
Final Thoughts
Cepatwawasan has demonstrated strong operational execution in its core plantation and milling businesses this quarter, translating higher production into significant profit growth. While the power plant segment faces temporary setbacks, the group’s focus on efficiency and cost control positions it well to navigate the ongoing market uncertainties.
What are your thoughts on the palm oil sector’s outlook for the second half of 2025? Do you think the company can maintain this growth momentum? Share your views in the comments below!
