PETALING JAYA: BATU KAWAN BHD saw its net profit for the third quarter ended June 30 improve 32% to RM106.59mil compared with the corresponding quarter last year.
This was despite a 10.8% decline in revenue to RM4.47bil.
However, on a nine-month basis, the group registered a 10.7% decline in net profit at RM394.24mil compared with the same period last year, mainly attributed to weaker realised crude palm oil (CPO) and palm kernel selling prices.
According to a Bursa Malaysia filing, the decline in net profit for the nine-month period was further affected by negative contribution from processing and trading operations, as well as a net unrealised foreign-exchange translation loss of RM68.3mil on loans advanced and bank borrowings to Indonesian subsidiaries.
“The group’s plantations profit is expected to be lower with the prevailing weak CPO price.
“The decline in plantations’ profit will be mitigated by the higher contributions from oleochemicals, and from the chemicals division due to favourable selling prices.
“Overall, the group expects a lower profit for the current financial year,” said Batu Kawan.