KLK Q1 net profit rallies to RM599 mln on higher palm oil prices

KUALA LUMPUR, Feb 16 -- Kuala Lumpur Kepong Bhd’s (KLK) net profit surged to RM599.3 million in the first quarter ended Dec 31, 2021 (Q1 FY2022) from RM357.4 million in the same period a year earlier.

Revenue jumped to RM6.83 billion from RM4.3 billion previously.

The company told the stock exchange its plantation division profit more than doubled to RM607.9 million, boosted by significantly higher crude palm oil (CPO) and palm kernel (PK) prices.

Its manufacturing division reported a 74 per cent surge in profit to RM319.6 million from RM183.7 million in the previous corresponding period.

However, the plantation group’s property development business profit fell 14.5 per cent to RM18.8 million despite higher revenue of RM56.0 million due to lower margins.

For the investment division, its profit improved marginally to RM23.9 million from RM22.2 million previously, mainly contributed by better profit from the farming sector of RM59.7 million due to higher revenue from the higher average selling price of all crops.

KLK said its plantation profit for FY2022 is expected to be better, supported by buoyant CPO and PK prices and profit contribution from newly acquired subsidiaries.

“Despite a challenging operating environment posed by the volatility of raw material prices and intense competition, the performance of the manufacturing division is projected to be satisfactory for FY2022,” it added.

-- BERNAMA