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KUALA LUMPUR: Kuala Lumpur Kepong Bhd
(KLK) posted a lower net profit of RM84.10 million in the third quarter ended June 30, 2023 (3Q FY2023) against RM558.27 million in 3Q FY2022.
Revenue also declined 26.5 per cent to RM5.11 billion from RM6.96 billion previously.
The plantation group said profit from its plantation segment plummeted by 78.8 per cent year-on-year to RM125.9 million, mainly due to weaker crude palm oil (CPO) and palm kernel average selling prices, higher CPO production costs and a net loss of RM8.7 million from fair value changes on outstanding derivative contracts.
“Manufacturing segment reported a loss of RM73.7 million due to the drop in revenue to RM4.32 billion and a loss incurred by the oleochemical division which was impacted by eroded demand and profit margin,” it said in a filing with Bursa Malaysia today.
However, the group said its property segment’s profit improved to RM19.3 million in 3Q FY2023, aided by higher revenue of RM61.6 million.
As for its prospects, KLK expects its financial performance for FY2023 to be significantly lower compared to previous financial years but projects its 4Q FY2023 results to be better.
On CPO prices, the group is cautiously optimistic that the prices would likely stay at around the current level of RM3,800 per tonne for the rest of the year, adding that both fresh fruit bunches and CPO yields are expected to be marginally better than a year ago due to recovering momentum. – Bernama
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