Batu Kawan’s pre-tax profit for the current quarter was 38.4% lower at RM389.83 million (1Q2023: RM633.02 million) on a 16.5% lower revenue at RM5.83 billion (1Q2023: RM6.99 billion). Profit after tax was also lower at RM111 million versus RM235 million last year.
Plantation’s profit was 11.1% higher at RM375.93 million (1Q2023: RM338.35 million) mainly due to higher CPO and PK sales volume and lower CPO production cost, coupled with net gain of RM1.01 million (1Q2023: RM69.47 million net loss) from fair value changes on outstanding derivatives contracts. However, the increase in profit was partially offset by lower CPO and PK selling prices and fair value loss of RM9.50 million (1Q2023: RM6.61 million gain) on unharvested fresh fruit bunches valuation.
Manufacturing’s profit dipped 86.3% to RM40.29 million (1Q2023: RM294.36 million profit) on the back of 19.3% lower revenue at RM4.65 billion (1Q2023: RM5.77 billion) mainly due to loss incurred in the Oleochemical division from eroded profit margin and lower profit contributions from refineries and kernel crushing operations.
Industrial Chemical division’s profit was 59.3% lower at RM16.90 million (1Q2023: RM41.50 million) from lower selling prices and sales volume coupled with higher production costs. Property Development’s profit was 32.6% at RM12.09 million (1Q2023: RM9.11 million) supported by higher revenue at RM70.33 million (1Q2023: RM30.96 million).
Included in Investment Holdings/Others were unrealised foreign currency exchange translation gain of RM4.70 million (1Q2023: RM60.01 million loss) on inter-company loans and bank deposits denominated in foreign currencies and a surplus on sale of land and government acquisition amounted to RM17.67 million (1Q2023: RM42.69 million surplus). Farming sector recorded lower profit of RM7.65 million (1Q2023: RM62.74 million profit) on lower sales volume from lower crop production which was affected by adverse weather condition.
For the current quarter, the Group’s pre-tax profit jumped more than two-fold to RM389.83 million as compared to RM185.73 million reported in the preceding quarter.
