KUALA LUMPUR: Batu Kawan Bhd posted a higher net profit of RM191.35 million for the first quarter ended Dec 31, 2020 (Q1 2021) from RM103.43 million registered in Q1 2020.
Revenue increased by 5.5 per cent to RM4.44 billion from RM4.21 billion previously, the group said in a filing with Bursa Malaysia today.
The group said its plantation segment’s profit was significantly higher, rising by 79.5 per cent to RM304.63 million on the back of higher crude palm oil (CPO) and palm kernel selling prices.
However, revenue from the segment declined by 10.2 per cent to RM1.81 billion (Q1 2020: RM2.01 billion) from lower CPO sales volume, and higher unrealised loss of RM39.02 million arising from fair value changes on outstanding derivative contracts, it said.
Meanwhile, its manufacturing segment also registered a higher profit of RM149.6 million in Q1 2021 from RM98.96 million in Q1 2020, while the revenue increased by 19.8 per cent year-on-year to RM2.43 billion.
Additionally, the group’s property development segment saw its profit increased by 68.7 per cent to RM22.90 million during the quarter, and a higher revenue of RM53.43 million from RM52.22 million in Q1 2020.
Moving forward, Batu Kawan said in view of current buoyant CPO and PK prices, the group’s plantation segment profit is expected to improve for the 2021 financial year (FY21).
For its manufacturing segment, the group said the oleochemical division’s performance has so far been satisfactory, notwithstanding a challenging year, while the industrial chemical division’s performance has been impacted by lower caustic soda’s selling prices but is expected to improve.
“Overall, the group’s profit will be higher for FY21,” it added. -Bernama
