KLK’s Revenue Surged 44.3% Driven by Plantation Segment

For the first nine-month period, the revenue of KLK surged to RM20.17bil as compared to RM13.98bil in the nine-month period of FY21. This translates to a 44.3% surge in revenue posted by the group. Whilst net profit increased 4% y-o-y to RM1.7bil or an EPS of 158 sen.

The palm oil plantation company’s revenue for 3Q ended June 30, 2022 rose to RM6.96bil from RM5.17bil in 3Q of financial year 2021 (FY21) on higher contribution from its plantation business which enjoyed higher prices for its crude palm oil (CPO) and palm kernel (PK) oil.

Meanwhile, net profit for the period lowered by 29% YoY to RM558.3mil or EPS of 51.8 sen primarily due to 3Q of FY21 having factored in gains on disposal of an associate company, Aura Muhibah Sdn Bhd.

Its plantation segment reported a spike in profit to RM594.3mil in the said quarter as compared with RM402.9mil in 3Q of FY21 driven by higher CPO and PK prices, profit contribution from recently acquired subsidiaries and a higher unrealised gain of RM86.7mil from fair value changes on outstanding derivative contracts, compared to the unrealised gain in 3Q of FY21 stood significantly lower at RM18.7mil.

KLK’s manufacturing segment saw net profit decreased by 11.9% y-o-y to RM208.9mil in the quarter in spite of +33.4% growth in revenue to RM5.86bil. This is due to losses from refineries and kernel crushing operations and a higher unrealised loss of RM33.7mil from fair value changes on outstanding derivative contracts.

The company said in its statement that its plantation segment will sustain despite CPO and PK prices easing following an increase of 41% and 40.9% to RM4,857 and RM3,364 per tonne respectively in 3Q of FY22.

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