thestar : TDM plans to sell poultry business

Friday March 20, 2009

By EILEEN HEE


Segment made a loss of RM1mil to RM2mil last year

KUALA LUMPUR: Terengganu state-owned investment holding company TDM Bhd plans to sell its loss-making poultry business and focus on core areas, namely plantation and healthcare, said chief executive officer Badrul Hisham Mahari.

“The poultry segment is bringing us down and it does not fit our portfolio anymore,” he told reporters here after a media briefing on the group’s financial results yesterday.

TDM’s poultry segment had made a loss of RM1mil to RM2mil last year, due to a lack of expertise and an inability to compete, according to Badrul.

The integrated poultry farm with a production capacity of 300,000 to 500,000 chickens per month employs 150 people and 100 contract farmers.

On its healthcare segment, Badrul said the company would focus on expansion in the east coast, namely Kuantan and Terengganu.

“We are scouting around towns in the east coast to set up a hospital by this year,” he said, adding that the company was targetting the mid-range healthcare market.

Last year, its three medical centres, namely Kelana Jaya Medical Centre, Kuantan Medical Centre and Kuala Terengganu Medical Centre, saw a growth of 20% in the number of patients.

“We hope to (see) a growth in profit of between 1% and 3% this year and I think this is achievable,” he said, referring to its healthcare segment.

Commenting on its plantation business, Badrul said the group had seen improvements in fresh fruit bunches (FFB) production, which yielded 595,002 tonnes in 2008, compared with 515,893 tonnes in 2007.

“We are confident of achieving FFB production of 600,000 tonnes this year,” he said.

【blogger add : beyond expectation owing to bad weather.
for reference : 353295 in first 9 month】

TDM currently manages 12 oil palm estates, totalling 35,000ha in Terengganu, and is also undertaking expansion plans in Kalimantan, Indonesia.

Badrul said the project there was expected to contribute positively to the group’s earnings from 2011.

“We have started to clear land and we are going to start to plant the trees,” he said, adding that the first phase of planting would involve 10,000ha of land.

In its financial year ending Dec 2008, TDM posted a revenue of RM385mil, up 44% from 2007. Pre-tax profit jumped 139% to RM144mil while earnings per share bounced to 45.85 sen from 17.71 sen.

“The improved results were attributed to higher yields and the (higher) average crude palm oil (CPO) price at the plantation division and better performance by the healthcare division in terms of an increased number of patients,” Badrul said.