Kuala Lumpur Kepong Q1 earnings more than double as all segments perform well

PETALING JAYA: Kuala Lumpur Kepong (KLK) Bhd posted a net profit of RM357.4 million for its first quarter ended Dec 31, 113.8% higher from RM167.2 million a year before on higher profit contributions from all operating segments.

Revenue climbed to RM4.3 billion year on year from RM4 billion.

Segmentally, plantation profit surged 83.3% to RM288.9 million from RM157.7 million, driven by an improvement in crude palm oil (CPO) and palm kernel (PK) selling prices, and better contributions from processing and trading operations.

Manufacturing profit rose by 67.2% to RM133.7 million from RM80 million previously, largely contributed by China and Europe operations coupled with unrealised gain from fair value changes on outstanding derivative contracts.

Its property division’s profit rose 62.2% to RM22 million due to recognition of profit from projects with better margins, while its investment holdings segment saw a substantial rise in profit to RM47.1 million from RM8.1 million, underpinned by improved yields and higher cropped area.

Meanwhile, the increase in corporate income to RM27 million was largely attributable to higher foreign currency exchange gain of RM41.1 million on translation of inter-company loans denominated in foreign currencies.

Looking ahead, KLK said it expects plantation profit will improve in FY2021 in view of current buoyant CPO and PK prices.

“Performance of the oleochemical division has so far been satisfactory but is expected to be challenging. Overall, the group’s profit for the financial year 2021 will be higher,” it added.

Plantation segment’s profit surged 83.3%, driven by improvement in crude palm oil and palm kernel selling prices. – KLK website pix