24 June 2021 – TDM Berhad had successfully organised its 56th Annual General Meeting under the chairmanship of its Non-Independent & Non-Executive Director Tuan Haji Burhanuddin Hilmi Mohamed @ Harun, with eight resolutions approved by all shareholders present. As part of safety measures in view of the pandemic, and in line with the revised Guidance Note on the conduct of general meeting issued by the Securities Commission Malaysia on 6 June 2021, the AGM, together with the voting process were conducted virtually through an online meeting platform of TIIH Online.
At the 56th AGM, TDM announced its 2020 achievements and performance, having successfully reversed the downward trend that negatively impacted the previous three financial years, placing the Group on a strong footing to capitalise on post-pandemic prospects.
For the 12 months ended 31 December 2020 (FY2020), TDM achieved a Revenue of RM442.9 million, an increase of 4.2% over the RM425.1 million recorded in FY2019. The growth was driven by its Plantation division on the back of higher crude palm oil (CPO) and palm kernel (PK) prices and minimal production disruptions caused by the pandemic. In contrast, though currently in a recovery stage after many rounds of Movement Control Order (MCO), the healthcare division experienced a reduction in patient loads at its hospitals. Overall, the company has recorded a remarkable performance of an adjusted EBITDA of RM96.4 million, a massive 51% growth compared to the adjusted EBITDA of RM63.6 million in the previous year.
The Group’s significant growth in total Revenue led to a Profit Before Tax (PBT) of RM9.6 million, completing a turnaround following substantial losses in FY2019 (-RM40.4 million), FY2018 (-RM37.6 million), and FY2017 (-RM96.8 million), where the results were affected by impairments on the loss of investment to its plantation assets in Kalimantan, Indonesia.
The Group has earned reinstatement to the SC’s shariah-compliant list effective 27 November 2020 to join the ranks of 715 other counters on Bursa Malaysia which includes 34 other plantation companies. In the same month, TDM was listed in the FTSE Bursa Malaysia Palm Oil Plantation Index, one of only seven plantation players and among the top five constituents with a star rating of three out of five. The Group also achieved a three-star (out of four) rating on the FTSE Bursa Malaysia (FBM) Environmental, Social, and Governance (ESG) grading band, placing it on the second highest category (top 26 – 50%) among public-listed companies in FBM EMAS assessed by FTSE Russell.
During the meeting, TDM shareholders approved a single-tier final dividend in respect of the financial year ended 31 December 2020 of 0.23% on 1,722,881,001 ordinary shares. The Group’s solid progress and efficient operations have been translated into a dividend pay-out of RM4 million. The shareholders have given their endorsement to the payment of the final single-tier dividend of 0.23 sen per ordinary share for FY2020.
TDM have had a steady start to FY2021 despite facing hiccups due to another rounds of MCO, labour shortage and floods at several estates. During the first quarter ended 31 March 2021 (1QFY2021) The Group registered an EBITDA of RM22.6 million, compared to RM21.6 million in the previous corresponding quarter.
In view of the continuous unfavourable economic environment impacted by the COVID-19, the Group will follow through with its Business Continuity Plans (BCP) and Business Recovery Plans (BRP). It will continue strengthening its position by remaining focussed on improving productivity and oil palm age profile while optimising production cost for its Plantation business. As for its Healthcare Division, the Group will prioritise reinventing its services and products by leveraging on technology to expedite and improve its patient-care and treatment deliverables to the local community in Klang Valley and East Coast of Peninsular Malaysia.
The voting results of the resolutions presented at the 56th AGM can be viewed on TDM’s corporate website under Investor Relations page: https://www.tdmberhad.com.my/investor-relation/