KL Kepong net profit jumps 25.9% in third quarter

PETALING JAYA: Kuala Lumpur Kepong Bhd’s (KLK) net profit jumped 25.9% to RM141.9 million in the third quarter (Q3) ended June 30 from RM112.8 million in the previous corresponding quarter on higher operating income.
Revenue for the quarter decreased 11.1% to RM4.33 billion, from RM4.87 billion in the same period last year.
In Bursa Malaysia filing, KLK said its operating income was higher during the quarter due to a surplus of RM24.2 million, derived from the acquisition of plantation land by government.
However, it said its plantations profit fell substantially, by 42.8% to RM574.5 million, impacted by lower crude palm oil (CPO) and palm kernel selling prices realised and negative contribution from processing and trading operations.
For the nine months period, its net profit declined 14.6% to RM651.8 million, against RM763 million a year ago, while revenue fell 10.3% to RM14.2 billion, from RM15.84 billion previously.
On its prospects, KLK said with the current weak CPO prices, the group expects its plantations profit will be lower.
However, KLK said it will be mitigated by the better performance of the oleochemical operations, achieved through higher capacity utilisations and operational efficiencies along with lower raw material prices.
Overall, the group said it expects a lower profit for the current financial year.
KLK gained 18 sen or 0.73% to RM24.86 today with 553,000 shares changing hands.