TDM Sinks Into Red in 4Q, Declares 0.29 Sen Interim Dividend

KUALA LUMPUR (March 25): TDM Bhd, which is engaged in the palm oil plantation and healthcare segments, sank into a net loss of RM8.56 million or 0.5 sen loss per share for the fourth quarter ended Dec 31, 2020 (4QFY20) compared to a net profit of RM21.75 million or 1.26 sen earnings per share in the preceding quarter.

Quarterly revenue grew 6.82% to RM129.7 million from RM121.42 million quarter-on-quarter (q-o-q) attributed by higher revenue at both plantation and healthcare division segments by 2% and 14% respectively.

TDM declared an interim dividend of 0.29 sen per share to be paid on April 19, 2021.

“The plantation division recorded higher revenue by 2% mainly due to higher CPO (crude palm oil) and PK (palm kernel) average prices by 20% and 31% respectively. However, this is partly offset by lower sales volume of CPO and PK by 11% and 10% respectively, said TDM in the filing with Bursa Malaysia.

The group noted that the healthcare division recorded higher revenue by 14% mainly due to the increase in number of outpatient and inpatient days by 11% and 19% respectively, compared with the immediate preceding quarter which was mainly affected by the imposition of the Movement Control Order from March 18 2020 by the government.

On a yearly basis, net loss narrowed from RM148.31 million while revenue climbed 13.6% from RM114.16 million in the previous year.

For the full financial year ended Dec 31, 2020 (FY20), TDM’s net loss shrank to RM10.71 million versus RM199.87 million while its annual revenue inched up 4.2% to RM442.88 million from RM425.07 million a year earlier.

In a statement, the group also noted that it registered an earnings before interest, taxes, depreciation and amortisation (EBITDA) of RM107.8 million in FY20, compared with RM60.1 million in FY19, mainly due to stronger performance by plantation division from better average CPO and PK prices as well as good recovery by its healthcare business.

Commenting on the group’s prospects, TDM chairman Raja Datuk Idris Raja Kamaruddin said, TDM will remain focused on improving productivity and optimizing production cost for its plantation business.

“The recent acquisition of TDMYT (TDM-YT Plantation) is one of the key initiatives in our effort to increase our production and improve the overall age profile of the Group,” he said.

As for the healthcare segment, he said TDM continues to reinvent product and service offerings to face economic and business challenges impacted by Covid-19.

“We have formulated several strategies to address the challenges through our business continuity and business recovery plans.

“Overall, the group is optimistic of achieving satisfactory operating performance in the current financial year,” he added.

At the closing bell, TDM was up one sen or 1.69% to 30 sen, with some 3.04 million shares traded. Its market capitalisation stood at RM516.86 million.

Source: The Edge