KLK's 3Q net profit falls 29% to RM558.24mil
KUALA LUMPUR: Kuala Lumpur Kepong Bhd's (KLK), which saw net profit tumble 28.8% to RM558.24mil in the third quarter ended June 30 (3Q), expects to deliver a favourable set of results for FY22.
KLK said crude palm oil (CPO) prices have recently fallen from historical highs, triggered by global recessionary fears and a backlog of CPO stockpiles in Indonesia.
However, it noted that the supply of vegetable oils globally is still tight and prices are expected to be supported at current levels.
KLK said the operating environment for the plantation sector in the next quarter will be challenging with supply chain disruptions and inflationary pressures on fertiliser, agrochemicals and fuel prices.,
“The group has taken steps to mitigate these risks by continuing its efforts to aggressively boost productivity and enhance its mechanisation programmes.
“Plantation profit is expected to improve in FY2022, driven by higher CPO and PK prices as compared to the previous year,” it added.
On its manufacturing segment, KLK said raw material price volatility, high energy costs and persistent logistic issues continue to pose challenges for the remainder of the current financial year.
Its Q3, KLK’s revenue rose 34.6% to RM6.96bil from RM5.17bil last year. Earnings per share for the period was lower at 51.80 sen against 72.70 sen a year ago.
For the nine-month period, KLK's net profit increased 4.4% to RM1.7bil, or EPS of 158.10 sen from RM1.63bil last year, while revenue surged 44.3% to RM20.17bil from RM13.98bil a year prior.