Kuala Lumpur Kepong’s Q3 net profit slumps 55.5%

PETALING JAYA: Kuala Lumpur Kepong Bhd’s (KLK) net profit plunged 55.5% to RM112.76 million in the third quarter (Q3) ended June 30, 2017 against RM253.39 million in the previous corresponding period, due to losses in the manufacturing segment on the back of high volatility in the price of its raw material crude palm kernel oil.

Revenue, however, expanded 24.2% from RM3.92 billion to RM4.87 billion.

The average selling price for crude palm oil (CPO) was RM2,674 in Q3, 7.1% higher than the RM2,496 recorded in the same period a year ago.

The group expects a higher plantations profit for the current financial year in view of the prevailing CPO price and forecast of higher fresh fruit bunches production in the coming months.

For the nine-month period, KLK’s net profit declined 37.3% from RM1.22 billion to RM763 million, with revenue rising 32.4% from RM11.96 billion to RM15.84 billion.

Its shares fell two sen to close at RM24.68 yesterday on some 350,000 shares done, giving it a market capitalisation of RM26.35 billion.