IOI to benefit from fresh fruit bunch output recovery

HLIB Research said IOI's FFB output has shown month-on-month and year-on-year recovery since March.
PETALING JAYA: IOI Corp Bhd expects its continuing fresh fruit bunch (FFB) output recovery will help it beat its own growth guidance of 1% to 2% in the financial year 2025 (FY25).
Given the anticipated strong FFB output in the fourth quarter (4Q25), IOI is confident of keeping its crude palm oil (CPO) production cost at RM2,100 per tonne for the full year, said Hong Leong Investment Bank (HLIB) Research.
HLIB Research maintained its own FY25 FFB output growth assumption of 2.5%.
It said IOI's FFB output has shown month-on-month and year-on-year (y-o-y) recovery since March with weather conditions improving.
The output recovery has helped to narrow the group's year-to-date FFB output decline to just 0.3%, for the first 10 months of FY25.
Lower FFB output, minimum wage hike effective February and higher windfall profit levy had lifted IOI's 3Q25 CPO production cost by 1.3% y-o-y to RM2,530 per tonne, bringing its nine-month FY25 CPO production cost to RM2,104 per tonne.
It said the accelerated replanting programme of 8,000ha to 9,000ha per annum, embarked since FY19, would continue into FY26.
This will bring down its average age profile to about 13 years by end-FY26.

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