KLK reported a sharp dip in its second-quarter profit with PBT dipping 49.7% to RM299.5 million (1QFY2023: profit RM595.4 million) with lower revenue at RM6.048 billion (1QFY2023: RM6.708 billion).
The group noted that its plantation profit fell 13.9% to RM287.3 million (1QFY2023: profit RM333.6 million) mainly due
to: Lower Palm Kernel selling price realised at RM1,864/mt (1QFY2023: RM1,951/mt). Decrease in CPO and PK sales volume. Fair value loss of RM15.3 million (1QFY2023: gain RM5.3 million) on valuation of unharvested fresh fruit bunches.
However, the decrease in profit was partially cushioned by lower net loss of RM10.4 million (1QFY2023: net loss RM70.1 million) from fair value changes on outstanding derivative contracts. The manufacturing profit fell 26.9% to RM186.0 million (1QFY2023: profit RM254.4 million) on the back of lower revenue at RM5.090 billion (1QFY2023: RM5.522 billion). The decline in profit was mainly due to lower profit contributions from refineries and kernel crushing operations but partially mitigated by higher profit from the Oleochemical division.
As for the property, the unit saw an Increase in profit to RM18.7 million (1QFY2023: profit RM8.9 million) and was supported by higher revenue of RM57.5 million (1QFY2023: RM31.0 million). The Investment Holding/Others, segment loss of RM216.4 million (1QFY2023: profit RM26.5 million) largely attributable to an equity loss of RM169.7 million (1QFY2023: Nil) from an overseas associate, Synthomer plc, and loss incurred by the Farming sector of RM5.4 million.
