Innoprise Plantations wins Best Under Billion Award
Published on: Tuesday, October 17, 2017
Kota Kinabalu: Innoprise Plantations Bhd (IPB) was named the Best Under Billion Company during Focus Malaysia's Best Under Billion Award ceremony on Oct 13. Based on such criteria as revenue and profit growth over the last three years, sustainability and governance, among others, IPB emerged as the Overall Winner for 2016. In addition, IPB also won the Highest Revenue Growth and Highest Profit Growth Awards.
ADVERTISEMENT
At RM41.389 million for AY 2016, IPB's pretax profit had registered an excellent compound annual growth rate of 101.27pc over the last three years. "IPB's future growth is still firmly on an ascending trajectory for the next many years premised on the expected annual double digit growth in FFB production due to the excellent age profile of overwhelmingly young mature and immature oil palms" stated Lim Fook Hin, the Executive Director who received the awards on behalf of IPB. "Oil extraction rate achieved over the last 2 years averaged 24.50%, well above the national average of 20.15%" added Lim. IPB planted 12,294 hectares of oil palms in Tawau, together with a 60 MT FFB/ hr palm oil mill.
ADVERTISEMENT
About 10,686 hectares or 88pc of the plantings are mature of which only about 1,750ha are in prime age and the balance young mature palms. "Hence we are very confident of double digit FFB production growth for many years to come," said Lim. Stay up-to-date by following Daily Express’s Telegram channel.
Daily Express Malaysia
ADVERTISEMENT
IPB's net debt has been dropping rapidly over the last two years and will likely fall to below RM25 million by end of this year, giving a net gearing ratio of 8%. Cash flow wise the company is in a sweet spot as virtually all planting and development expenditure has been incurred and most infrastructure facilities for staff and employees completed. This bodes well for future dividend pay-out.
