IOI Corporation BHD Reports Strong Financial Performance for FY2025

IOI Corporation BHD, a leading Malaysian company in the palm oil industry, has reported a robust financial performance for the fiscal year 2025. The company’s net profit for the year surged by 37.07% to MYR 15.206 billion, driven by favorable market conditions and strategic business operations. This impressive growth is reflected in the company’s decision to increase its dividend payout to MYR 10.5 per share, up from MYR 9.5 in the previous fiscal year.

Key Financial Highlights

  • Net Profit and Revenue Growth: The company’s net profit for the fourth quarter of 2025 rose by 26% year-on-year to MYR 4.365 billion, with full-year net profit reaching MYR 15.206 billion. Revenue for the year increased by 18.03% to MYR 113.347 billion.
  • Dividend Announcement: IOI Corporation declared a dividend of MYR 5.5 per share for the second interim dividend, with an ex-dividend date of September 12 and a payment date of September 25. Combined with the first interim dividend of MYR 5 per share announced earlier in the year, the total dividend for FY2025 is MYR 10.5 per share.
  • Market Performance: The company’s share price closed above MYR 3.88, with a market capitalization exceeding MYR 242.6 billion.

Factors Contributing to Financial Success

  • Palm Oil Prices: The rise in crude palm oil (CPO) prices, which reached MYR 4,332 per tonne, significantly contributed to the company’s strong financial performance. Moody’s Ratings has raised its medium-term price sensitivity range for CPO to MYR 3,800–MYR 4,200 per tonne, citing stronger demand in Indonesia and modest production growth in Asia.
  • Foreign Exchange Gains: IOI Corporation benefited from a MYR 117 million gain from net foreign currency translation on foreign currency-denominated borrowings and deposits.
  • Production and Sales: The company’s plantation business performed well, with higher output and average selling prices. The strong performance is expected to continue into FY2026, supported by high yields from mature oil palm trees and the maturation of younger trees.

Challenges and Outlook

Despite the strong performance, IOI Corporation faced challenges in its manufacturing business, which turned from profit to loss due to lower margins in refining operations and reduced sales of oleochemicals. However, the company remains optimistic about the future, citing clear strategic guidance, strict execution, and a focus on innovation and sustainability.

Conclusion

IOI Corporation BHD’s financial results for FY2025 reflect a successful year driven by favorable market conditions and strategic business operations. The company’s strong performance in the palm oil sector, coupled with its diversified portfolio in the plantation and energy sectors, positions it well for continued growth in the coming years.