KUALA LUMPUR, Feb 23 — United Plantations Bhd posted its best results in its 120-year history, recording a net profit of RM830 million for the financial year ended Dec 31, 2025 (FY2025), up 15 per cent from RM719 million a year earlier, according to The Edge.

The Edge reported that the stronger performance was driven by historic crude palm oil (CPO) yields and firmer commodity prices.

Revenue rose 14 per cent to RM2.51 billion, underpinned by record production and higher prices.

According to the group’s annual report filed with Bursa Malaysia earlier today, the company achieved a CPO yield of 6.58 metric tonnes per hectare, despite facing challenges such as intense downstream competition and severe flooding in November.

Earnings per share for FY2025 stood at RM1.33.

The plantation group, which cultivates oil palms and coconuts on 62,500 hectares in Malaysia (83 per cent) and Indonesia (17 per cent), employs 6,926 people.

The Edge also reported that the company declared a 30 sen special dividend and a 51 sen final dividend, bringing total dividends for FY2025 to RM1.25 per share.

The final payout, amounting to nearly RM504 million, will be distributed on May 8, 2026.

As at Dec 31, 2025, United Plantations held RM428 million in cash, down from RM487 million in 2024, due to hedging activities, capital expenditure and the RM76.8 million acquisition of half of Arcadia Estate (North Arcadia).

The 600-hectare estate, taken over on Jan 1, 2026, expanded the group’s Malaysian land bank by 1.4 per cent to 45,024 hectares.

In his management discussion and analysis, vice-chairman and chief executive director Datuk Carl Bek-Nielsen said replanting will commence this year using high-yield planting materials developed by United Plantations, with yield improvements expected over five to six years.

The acquisition is expected to enhance operational synergies and economies of scale.

The group continues to maintain a conservative capital structure, ensuring sufficient funds for replanting, capital projects, stable dividends and new investments without relying on bank financing.

Looking ahead, United Plantations expects challenges in 2026 arising from geopolitical tensions, tariffs and global economic conditions, which could affect palm oil demand and prices.

It noted that Indonesia’s biodiesel mandates, production variability in Malaysia and Indonesia, as well as global economic growth trends, will influence supply, demand and stock levels.