Greetings, fellow investors and market enthusiasts!
Today, we’re diving into the latest financial pulse of TA ANN HOLDINGS BERHAD (Company No: 419232-K) with their unaudited condensed consolidated results for the second quarter and first half ended 30 June 2025. This report offers a comprehensive look at the company’s performance, strategic direction, and shareholder returns amidst a dynamic global market. The headlines are certainly grabbing attention: significant growth in both revenue and profit for the quarter and first half, a robust financial position, and a noteworthy dividend announcement. But what are the drivers behind these figures, and what does the road ahead look like for this Malaysian powerhouse?
A Strong Performance Kicks Off the Year!
TA ANN Holdings has delivered a commendable financial performance for the first half of 2025. The company announced a second interim single-tier ordinary dividend of 10 sen per ordinary share for the financial year ending 31 December 2025, a significant step up from no dividend in the corresponding period last year. This demonstrates the company’s commitment to returning value to its shareholders, reinforcing confidence in its underlying profitability and cash generation capabilities.
Q2 2025 Performance: A Closer Look
The second quarter of 2025 proved to be a period of robust growth for TA ANN. The company reported a substantial increase in its top and bottom lines compared to the same period in 2024.
Current Quarter (Q2 2025)
Revenue: RM432,610k
Profit Before Tax (PBT): RM79,804k
Profit Attributable to Owners of the Company: RM54,269k
Basic Earnings Per Share: 12.32 sen
Corresponding Quarter (Q2 2024)
Revenue: RM366,734k
Profit Before Tax (PBT): RM54,247k
Profit Attributable to Owners of the Company: RM48,714k
Basic Earnings Per Share: 11.06 sen
For the second quarter, revenue climbed by an impressive 17.96% to reach RM432.61 million, while Profit Before Tax surged by an even more remarkable 47.11% to RM79.80 million. Profit attributable to owners of the company saw an 11.40% increase, translating to a basic Earnings Per Share of 12.32 sen, up 11.39%. This stellar performance was primarily fueled by a 30% increase in sales volumes of export logs and a 15% increase in crude palm oil (CPO) sales volumes, coupled with a 7% rise in average selling prices for both products. It’s important to note that the gain from changes in fair value of biological assets decreased by 46.64% to RM10.63 million in the current quarter compared to the corresponding period last year, indicating a more conservative valuation environment, yet the core business still drove strong profit growth.
First Half 2025: Cumulative Growth
Looking at the cumulative six months, the positive momentum continued, underscoring the company’s consistent operational strength.
Current Period (H1 2025)
Revenue: RM839,628k
Profit Before Tax (PBT): RM152,727k
Profit Attributable to Owners of the Company: RM95,945k
Basic Earnings Per Share: 21.78 sen
Corresponding Period (H1 2024)
Revenue: RM719,148k
Profit Before Tax (PBT): RM111,076k
Profit Attributable to Owners of the Company: RM91,960k
Basic Earnings Per Share: 20.88 sen
For the first half of 2025, revenue expanded by 16.75% to RM839.63 million, while Profit Before Tax jumped by 37.50% to RM152.73 million. Profit attributable to owners of the company saw a 4.33% increase, resulting in a basic Earnings Per Share of 21.78 sen, up 4.31%. The cumulative performance was largely attributable to higher average selling prices for CPO, which rose by 17%, and Fresh Fruit Bunches (FFB), which increased by 14%. Similar to the quarter, the gain from changes in fair value of biological assets for the first half decreased significantly by 60.88% to RM11.08 million compared to the same period last year.
Segmental Performance: The Driving Forces
A closer look at the business segments reveals the primary engines of TA ANN’s growth:
| Segment | H1 2025 Revenue (RM’000) | H1 2024 Revenue (RM’000) | H1 2025 PBT (RM’000) | H1 2024 PBT (RM’000) |
|---|---|---|---|---|
| Timber Products | 74,802 | 106,634 | (5,927) | (1,311) |
| Oil Palm | 762,914 | 610,604 | 157,631 | 111,262 |
The Oil Palm segment was clearly the star performer, with its revenue surging by nearly 25% and Profit Before Tax by over 41%. This robust growth in the plantation business successfully offset a decline in the Timber Products segment, which experienced a 29.85% decrease in revenue and a widened loss before tax. The strong performance of the Oil Palm segment highlights its crucial contribution to the Group’s overall profitability and resilience.
Strengthening Financial Position and Cash Flows
TA ANN’s financial health remains solid, with improvements across key balance sheet indicators.
As at 30 June 2025
Total Assets: RM2,728,694k
Total Equity: RM2,090,539k
Net Assets Per Share: RM4.25
Cash and Cash Equivalents: RM443,369k
As at 31 December 2024
Total Assets: RM2,673,172k
Total Equity: RM2,036,941k
Net Assets Per Share: RM4.14
Cash and Cash Equivalents: RM434,302k
As of 30 June 2025, total assets increased by 2.08% to RM2.73 billion, while total equity grew by 2.63% to RM2.09 billion. This translates to an improved net assets per share of RM4.25, up 2.66% from RM4.14 at the end of 2024. The company’s cash and cash equivalents also saw a healthy increase of 2.09% to RM443.37 million, indicating strong liquidity.
Cash Flow Dynamics
The cash flow statement for the first half of 2025 reflects efficient operations and strategic financial management:
- Net cash from operating activities rose by 13.37% to RM114.04 million, indicating robust core business performance.
- Net cash from investing activities saw a significant turnaround, moving from a negative RM52.72 million in the previous year to a positive RM0.57 million. This substantial shift was partly due to an uplift of fixed deposits with original maturities of more than 3 months.
- Net cash used in financing activities reduced by 36.48% to RM85.06 million, reflecting lower dividend payments to owners of the Company and a reduction in repayment of borrowings compared to the previous year.
Navigating the Future: Risks and Prospects
TA ANN Holdings is optimistic about its future, despite the global uncertainties that continue to shape the market landscape.
The Timber and Plywood Divisions have demonstrated strong productivity and production efficiency, supported by favorable weather conditions and a stable resource supply. Timber prices have stabilised, and the broader commodity markets are showing encouraging signs of recovery. This provides a solid foundation for continued performance in this segment.
In the Plantation segment, CPO prices have shown resilience, reaching RM4,379/mt by mid-August 2025. This upward trend is driven by several factors, including ongoing supply chain disruptions, stronger biodiesel mandates, and tighter soybean availability in the global market. However, trade shifts and potential labour shortages in key markets introduce an element of uncertainty. The Group anticipates improved production as the peak crop season approaches, supported by sustained agronomic practices across its plantations.
Against this backdrop of evolving market dynamics, TA ANN remains steadfast in its commitment to prudent cost management, resource optimisation, and sustainability-led initiatives. These strategies are crucial for reinforcing the company’s long-term resilience and competitiveness in an ever-changing environment.
Barring any unforeseen circumstances, the Board of Directors is confident in delivering a satisfactory performance for the financial year ending 31 December 2025.
Summary and Investment Recommendations
TA ANN Holdings has demonstrated a strong financial rebound in the first half of 2025, primarily driven by its robust Oil Palm segment and strategic operational efficiencies. The significant increase in revenue and Profit Before Tax, coupled with improved cash flows and a healthy dividend declaration, reflects a well-managed company navigating market complexities effectively. While the Timber division faces challenges, the overall resilience and growth potential from the Plantation segment provide a positive outlook. The company’s focus on cost management, resource optimisation, and sustainability initiatives are crucial for its continued long-term stability and competitive edge.
- The Oil Palm segment remains a primary growth driver, benefiting from favourable CPO and FFB prices.
- Improved operational cash flow highlights the efficiency of core business activities.
- The declared interim dividend signals confidence from management in the company’s profitability and financial health.
- Global market uncertainties and fluctuations in commodity prices, particularly for CPO and timber, will continue to be key factors to monitor.
- The company’s strategic focus on cost management and sustainability initiatives are essential for long-term resilience.
From a senior blogger’s perspective, TA ANN’s latest report paints a picture of a company with strong fundamentals, particularly in its oil palm operations, which are effectively compensating for softer performance in its timber division. The proactive dividend declaration is a clear sign of financial strength and a commitment to shareholder value. While external factors like commodity price volatility and global economic shifts will always be present, the company’s strategic focus on efficiency and sustainability positions it well for future growth.
What are your thoughts on TA ANN’s performance this quarter? Do you believe the company can maintain this growth momentum in the second half of the year, especially with the anticipated peak crop season? Share your views and insights in the comment section below!
For more detailed analysis and updates on Malaysian companies, stay tuned to our blog for upcoming reports and discussions.
