KLK Q2 Net Profit Up 17-Fold to RM490 million
Posted 19 May 2021
Kuala Lumpur Kepong Berhad’s (KLK), net profit for its second quarter ended 31 March 2021, surged to RM490.44mil from RM27.89mil in the previous corresponding period, driven by better profits from its plantation, manufacturing and property development segments.
In a filing with Bursa Malaysia yesterday, the company said profit was also aided by foreign exchange gains in the corporate segment, surplus on sales of plantation land and government acquisition. Revenue in the second quarter rose to RM4.51bil from RM3.8bil a year earlier. KLK also declared an interim single-tier dividend of 20 sen per share, to be paid on 3 August 2021.
KLK said profit for its plantation segment was substantially higher at RM277.9mil, compared with RM145.7mil in the previous corresponding period, supported by better crude palm oil (CPO) and palm kernel prices.
Separately, KLK’s manufacturing segment’s profit doubled to RM196.9mil, mainly attributable to improved profit margins and higher revenue of RM2.62bil from increased sales volume.
“Improvement in performance from Malaysia, China and Europe operations had contributed positively to this segment’s profit,” it said.
The group’s property segment reported a higher profit of RM16.8mil, compared with RM4mil in the previous corresponding period, on the back of significant improvement in revenue.
For the six-months period ended March 31, KLK’s net profit jumped to RM847.85mil from RM195.09mil in the previous corresponding period, while revenue rose to RM8.81bil from RM7.88bil a year earlier. Commenting on its current year’s prospects, KLK said plantation earnings would be substantially higher as the current crude palm oil prices remain buoyant, underpinned by tight palm oil inventories and global edible oil supplies.
“Amid a difficult operating environment, the oleochemical division has performed well. The coming quarters will be challenging for this division due to zero duty for oleochemical products in Indonesia. Nevertheless, this division anticipates its profit for 2021 to be much better than the preceding year. Overall, the group’s profit for 2021 will be significantly higher,” it said.
from The Star, 20 May 2021