Batu Kawan 1Q profit jumps 72.8% YoY to RM330.7mil

KUALA LUMPUR: Batu Kawan Bhd’s net profit jumped 72.8% to RM330.72mil in the first quarter ended Dec 31, 2021 (1Q22) from RM191.35mil a year ago.

Revenue during the quarter rose 60.1% to RM7.1bil against RM4.43bil posted a year prior.

Batu Kawan said its plantation’s profit was more than doubled to RM623.58mil during the quarter with 89.3% higher revenue of RM1.15bil from higher crude palm oil (CPO) and palm kernel selling prices, and profit contributions from newly acquired subsidiaries.

The profit was partially offset by a higher unrealised loss of RM28.72mil from fair value changes on outstanding derivative contracts.

Its manufacturing segment’s profit was 88.6% higher at RM373.25mil on 58.0% higher revenue at RM5.73bil coupled with unrealised gain of RM44.90mil from fair value changes on outstanding derivative contracts.

The oleochemical division's profit was 86.2% higher at RM240.67mil contributed by better performance from all regions.

Profit from refineries and kernel crushing operations increased 58.5% to RM79.12mil during the quarter.

Batu Kawan s property development's profit fell 15.2% to RM18.83mil on lower profit recognition from the Bandar Seri Coalfields' development, despite 4.8% higher revenue of RM56.01mil.

Commenting on its prospects, Batu Kawan expects to maintain good performance for the financial year 2022.

“In view of higher CPO prices together with profit contributions from newly acquired subsidiaries, the group's plantation segment is expected to continue its strong performance for the financial year 2022,” Batu Kawan said.

“Oleochemical division to operate satisfactorily for the financial year 2022, despite challenges from volatile raw material price movements and intense competition.

“The group industrial chemical division's performance is expected to be better in the financial year 2022, supported by the strong prevailing caustic soda prices,” it added.