KUALA LUMPUR, Aug 24 (Bernama) --Batu Kawan Bhd reported a net loss of RM653.16 million in the third quarter (3Q) of 2026, which ended on June 30, 2026, compared to a net profit of RM182.92 million from the same period a year earlier.
The loss was mainly due to a RM1.62 billion impairment loss on its subsidiary, Kuala Lumpur Kepong’s investment in United Kingdom-listed associate Synthomer plc.
Its revenue rose to RM7.24 billion from RM6.60 billion in the same quarter last year, supported by improved contributions from both the plantation and manufacturing segments.
“The impairment is accounting in nature and does not affect the group’s operating cash flows, liquidity position, debt servicing capability or dividend-paying capacity,” stated Batu Kawan in a Bursa Malaysia filing today.
The plantation, chemical manufacturing, and property development group said that for the first nine months of 2025, with the financial year ending Sept 30, 2026, it posted a net loss of RM306.04 million from a net profit of RM398.40 million a year ago.
Revenue increased to RM20.47 billion from RM19.24 billion a year ago, supported by higher sales volumes and lower production costs.
The company expects its plantation segment to continue delivering a strong performance, supported by healthy production levels and favourable palm product prices, although operating costs are expected to remain elevated.
The group said the oleochemical division is also expected to benefit from improving market conditions, while refinery and kernel crushing operations are likely to remain challenging amid industry overcapacity and margin pressure.
“The industrial chemical division continued to deliver a stable performance, supported by higher demand.
“The group’s performance continues to be supported by the plantation segment as the key earnings driver,” it said.
Despite volatile macroeconomic conditions and geopolitical uncertainties, the group remains cautiously optimistic about delivering a favourable performance for the rest of the year.
-- BERNAMA
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