KUALA LUMPUR: Kuala Lumpur Kepong Bhd’s (KLK) net profit fell to RM443.04 million in the first quarter (1Q) ended Dec 31, 2022, for the financial year ending Sept 30, 2023 (FY2023), from RM599.32 million in the previous corresponding quarter.
Revenue fell to RM6.71 billion from RM6.83 billion previously.
In a filing with Bursa Malaysia today, the plantation group said profit for its plantation segment decreased to RM333.6 million, largely caused by lower crude palm oil (CPO) selling prices and higher production costs.
“Manufacturing’s revenue was flat at RM5.5 billion in 1Q FY2023, while profit fell 20.4% year-on-year to RM254.4 million, mainly attributable to lower profit contribution from the oleochemical division, which was partially offset by higher profit from the refineries and kernel crushing operations.
“Profits for the property segment fell 52.5% y-o-y to RM8.9 million in 1Q FY2023, while investment holding/others’ profit has improved to RM26.5 million,” it added.
On prospects, KLK said profitability contribution from the plantation segment is expected to soften for FY2023.
“Current palm oil market appears to remain uncertain, influenced by trade policy changes in both consuming and producing countries, lingering geopolitical tensions that could still impact commodity prices and concerns on global economic performance.
“Notwithstanding its discount to soybean oil, palm oil prices have eased considerably from the historically high levels seen recently,” it said.
KLK said it would remain focused on boosting productivity and improving the fresh fruit bunches and CPO yield to mitigate the impact of rising costs.
It expects FY2023 financial performance to be subdued compared to the previous financial year. – Bernama