Fresh off announcing its proposed 61% acquisition of Boustead Plantation from LTAT, KLK reported its 3rd quarter pre-tax profit which fell 90.1% to RM74.5 million (3QFY2022: profit RM753.7 million) on the back of a 26.5% reduction in revenue to RM5.114 billion (3QFY2022: RM6.961 billion).
KLK said despite higher CPO sales volume and a lower fair value loss of RM14.3 million (3QFY2022: loss RM56.4 million) on valuation of unharvested fresh fruit bunches, plantation profit dropped substantially by 78.8% to RM125.9 million (3QFY2022: profit RM594.3 million) mainly due to weaker average selling prices of CPO and PK realised.
The manufacturing segment reported a loss of RM73.7 million (3QFY2022: profit RM208.9 million) mainly attributable to drop in revenue to RM4.315 billion (3QFY2022: RM5.864 billion) and a loss incurred by the Oleochemical division which was impacted by eroded demand and profit margin.
As for the property segment, profit increased to RM19.3 million (3QFY2022: profit RM17.5 million) aided by higher revenue at RM61.6 million (3QFY2022: RM53.5 million).
