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PR Newswire
15-11-2024, 09:55 AM
Jaya Tiasa has undergone a significant transformation since its inception as a timber company in the 1980s. The diversification into oil palm has shifted the Group's primary revenue source.
But without this shift, the company would be in trouble today. Currently, the oil palm operation is the main profit driver. The timber segment faces declining production volumes due to policy shifts toward sustainable practices. The Group's reliance on oil palm highlights the critical need for a turnaround in the timber operations.
Looking ahead, the focus must be on improving operational efficiencies. This hinges on the readiness of the forest plantations to contribute to log supply. While the company has 2 business segments, only one is contributing to its bottom line. It is tough to be profitable when running one one cylinder with a 2 cylinder engine.
But without this shift, the company would be in trouble today. Currently, the oil palm operation is the main profit driver. The timber segment faces declining production volumes due to policy shifts toward sustainable practices. The Group's reliance on oil palm highlights the critical need for a turnaround in the timber operations.
Looking ahead, the focus must be on improving operational efficiencies. This hinges on the readiness of the forest plantations to contribute to log supply. While the company has 2 business segments, only one is contributing to its bottom line. It is tough to be profitable when running one one cylinder with a 2 cylinder engine.