The plantations group marked a major milestone in FY2025 by posting its highest profit since its founding in 1906.
The Danish-Malaysian company announced a net profit of RM830 million for the financial year ended Dec 31, 2025 (FY2025), a 15% rise from RM719 million in FY2024 on historic crude palm oil (CPO) yield.
Annual revenue jumped 14% to RM2.51 billion on record production and higher commodity prices.
The plantation group achieved a CPO yield of 6.58 metric tonnes per hectare in FY2025 despite challenges such as intense downstream competition and severe flooding last November.
UP declared a 30 sen special dividend and 51 sen final dividend for the quarter, making it a total dividend of RM1.25 sen per share for FY2025, amounting to nearly RM504 million. The final payout will be distributed on May 8.
The group grows oil palms and coconuts on 62,500 hectares of plantations in Malaysia (83%) and Indonesia (17%), employing 6,926 people.
The stock closed 32 sen or 1.1% higher at RM30.32, giving it a market capitalisation of RM18.93 billion. The shares have risen 40% over the past one year.
Headquartered in Teluk Intan, Perak, UP is recognised as one of the most efficient and sustainably managed medium-sized plantation groups in Malaysia and Indonesia.
It continues to maintain a conservative capital structure, ensuring funds are available for replanting, capital projects, stable dividends, and new investments without relying on bank financing.
On the outlook for 2026, UP expects challenges from geopolitical tensions, tariffs, and global economic conditions, which may affect palm oil demand and prices.
Specifically, the factors include Indonesia’s biodiesel mandates, production variability in Malaysia and Indonesia, and global economic growth influencing supply, demand, and stock levels.
The company was founded in early colonial Malaya in 1906 by Danish engineer Aage Westenholz, who was appointed as the first director of the Siam Tramway Company in 1887, and subsequently joined the Siam Electricity Company.
Westenholz’s time in Bangkok made him a wealthy man and by 1906, he was actively promoting new business ventures. One of these was an investment into cultivation of rubber trees in Malaya, which was the beginning of what would become United Plantations.
UP’s vice-chairman and chief executive director Carl Bek-Nielsen has a direct stake of 1.24% and a 48.4% deemed interest in the company, according to its latest annual report. - FMT
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