KLK posts surge in FY21 earnings to RM2.26bil

KUALA LUMPUR: Kuala Lumpur Kepong Bhd's full year net profit for its 2021 financial year surged nearly three times to RM2.26bil from RM772.6mil in the previous year on revenue that jumped 27.7% to RM19.92bil.

The plantations group said in a bourse filing that its net profit of RM625.8mil for the fourth quarter ended Sept 30,2021, was three times the net profit of RM208.82mil in the previous corresponding quarter as plantations profit surged on higher crude palm oil (CPO) and palm kernel (PK) prices.

Group revenue in Q4 was RM5.93bil, a 48.24% jump over RM4bil posted in the previous corresponding quarter on the back of strong earnings in the plantations and manufacturing segments.

Earnings per share rose to 58 sen form 19.40 sen in the comparative quarter.

The plantations segment reported a much improved performance following a jump in CPO and PK prices, higher CPO sales volume, profit contribution from newly acquired IJM Plantations Bhd and better profit from processing and trading operations.

In Q4, CPO prices jumped 52% year-on-year (y-o-y) to RM3,631 per metric tonne, while PK prices surged 58.4% to RM2,213 per metric tonne.

Meanwhile, the group's manufacturing segment posted a 21.3% improvement in profit to RM144.3mil on the back of 35.4% higher revenue of RM2.99bil.

The property development business' profit halved to RM14.6mil while revenue slipped to RM66.6mil.

In the group's investment holdings, there was a recognition of equity profit of RM242mil from an overseas associate, Synthomer plc.

Moving forward, the group said the performance of the plantations segment in FY22 is expected to be better on the back of strong CPO prices and profit contribution from the newly acquire plantation subsidiaries.

Despite challenges from volatile raw material price movements and logistic issues caused by the pandemic, the oleochemical division is expected to maintain its performance.

"Overall, the group is expected to sustain its strong performance going into financial year 2022," it said.

It added that the directors will recommend the payment of a final dividend for the financial year at a later date.
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