Tradewinds expects core businesses to imp
Tradewinds Corp Bhd expects an improvement in its core businesses with plantations and manufacturing set to be the major contributors to revenue in the years ahead, while hotels are set for an improvement.
Its chairman, Datuk Seri Megat Najmuddin Khas, said the group anticipates increases in terms of yield and production from its oil palm plantations as it has 30,000 ha yet to be planted, while a large percentage of the crop planted has yet to mature.
The group plans to plant 4,000 to 5,000 ha a year, he told a press conference after the company抯 annual general meeting today.
The group has a total landbank of 146,251 ha, of which 99,132 ha have been cultivated with oil palm. In these plantations, matured crops take up 84,173 ha.
There are no plans to acquire more land, he added.
On manufacturing, Megat Najmuddin said the group expects revenue from the sugar business to reach close to RM1 billion after the acquisition of Gula Padang Terap Sdn Bhd (GPT) last year.
Its sugar refining unit, Central Sugars Refinery Sdn Bhd, posted a revenue of RM687.1 million last year.
He, however, noted that it will be a challenge to reach the RM1 billion mark despite the contribution from GPT as the price of sugar in the international market has dropped by 25-30 per cent from US$500 per metric tonne last year.
The strengthening ringgit against the US dollar also means less income in ringgit terms.
On the hotel division, Megat Najmuddin said the occupancy rate in the first quarter improved to over 66 per cent from over 63 per cent from the same period last year. However, he feels that it is still low.
He said one of its hotels, Mutiara Beach Resort Penang, will be undergoing extensive renovation at a cost of RM80-100 million and will reopen for business in the second quarter next year. - Bernama
