KLK Berhad reported a sharp fall in pre-tax profit to RM1.152 billion (Todate 4QFY2022: profit RM3.219 billion) on the back of lower revenue at RM23.648 billion (Todate 4QFY2022: RM27.149 billion). Profit after tax dipped to RM834 million from RM2.16 billion registered in 2022.
Commenting on the results, the group said despite an increase in CPO and PK sales volume and fair value gain of RM9.6 million on the valuation of unharvested fresh fruit bunches, Plantation profit shrunk 45.6% to RM1.164 billion largely attributable to lower CPO and PK prices.
For the quarter under review, the pre-tax profit of the Group surged to RM182.8 million (3QFY2023: profit RM74.5 million) whilst revenue was up 13.0% to RM5.777 billion (3QFY2023: RM5.114 billion)
CPO prices traded within a tight range between RM3,700/mt to RM4,000/mt from July to September 2023, despite a few brief but failed attempts to break higher. Notably, the uncertainty in weather conditions has raised concerns on production, price expectations, particularly for the latter part of 2023 and further into next year.
Overall, the Group is cautiously optimistic of its financial results for FY2024, despite high interest environment as well as geopolitical conflicts which could weigh heavily on the global economy
