KUALA LUMPUR, Nov 18 -- Batu Kawan Bhd’s net profit surged to RM417.28 million for the financial year ended Sept 30, 2020 (FY20) from RM363.5 million in the previous year, mainly supported by the plantation segment amid stronger crude palm oil (CPO) and palm kernel selling prices.
Its revenue improved to RM16.08 billion in FY20 versus RM16.05 billion a year earlier.
In a filing with Bursa Malaysia today, the company said for FY20, its plantation segment’s profit was 84.2 per cent higher at RM748.42 million while revenue was 10.8 per cent higher at RM7.09 billion.
“This was contributed by stronger CPO and palm kernel selling prices, a RM29.28 million unrealised gain on valuation of unharvested fresh fruit bunches (FFB) and better profits from processing and trading operations, despite 3.9 per cent lower FFB production at 4.05 million tonnes,” it said.
However, it noted that the increase was offset by an unrealised foreign currency exchange translation loss of RM9.8 million on a US dollar bank loan in an Indonesian subsidiary, and unrealised loss of RM17.52 million from changes in fair value on outstanding derivative contracts.
For FY20, Batu Kawan said its property development segment reported a 16.3 per cent higher profit of RM55.06 million due to recognition of profits from projects with better margins, despite a nine per cent lower revenue of RM154.88 million.
Its manufacturing segment reported 3.2 per cent lower profit of RM465.27 million with 6.6 per cent lower revenue at RM8.58 billion in FY20, dragged mainly by the industrial chemical division which posted a 37.3 per cent lower profit of RM63.7 million impacted by lower selling prices and sales volume of caustic soda.
For the fourth quarter ended Sept 30, 2020 (4Q20), the company saw its net profit slipped to RM85.17 million from RM96.7 million in 4Q19, while revenue jumped to RM4.12 billion versus RM3.92 billion previously.
“The current quarter's profit was contributed by stronger CPO and palm kernel prices but offset by an unrealised loss of RM27.18 million from changes in fair value on outstanding derivative contracts,” it said.
According to Batu Kawan, for the period under review, the plantation segment’s profit was significantly higher by 45.2 per cent to RM193.65 million with a slight increase in revenue to RM1.7 billion.
“The property development segment recorded a 64.3 per cent higher profit of RM29.74 million with 43.1 per cent higher revenue of RM70.54 million.
“The manufacturing segment reported 20.6 per cent higher profit of RM130.68 million with 7.1 per cent increase in revenue to RM2.3 billion,” it said.
Moving forward, Batu Kawan expects to see better profits for FY21.
“In view of better prevailing CPO prices and higher exports of the group's plantation segment, profit for this segment is expected to be much improved for FY21.
“Given the uncertainties arising from the COVID-19 pandemic worldwide, both the group's oleochemical and industrial chemical divisions anticipate a challenging year ahead,” it said.
Malaysian National News Agency
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