KLK 2Q net profit rises 11% to RM546mil, declares 20 sen dividend

KUALA LUMPUR: Kuala Lumpur Kepong Bhd (KLK), which posted an 11.4% jump in its net profit of RM546.57mil in the second quarter ended March 31 (2Q22), has proposed a dividend of 20 sen per share.

The entitlement date for the dividend is July 12 and the payment is on Aug 2.

The plantations group’s revenue surged 41.6% to RM6.38bil in 2Q22 compared with RM4.51bil in the same quarter last year.

During the quarter, its plantation division recorded a higher profit of RM423.3mil against RM255.9mil in 2Q21 due to significantly higher crude palm oil (CPO) and palm kernel (PK) prices.

Its realised CPO price was RM4,378 per tonne while PK at RM3,860 a tonne in 2Q22.

However, KLK said the increase in profit was partially offset by an unrealised loss of RM84.9mil from fair value changes on outstanding derivative contracts.

Its manufacturing profit jumped sharply to RM377.9mil on the back of a 35.8% increase in revenue to RM5.292bil. The higher profit was mainly due to higher contribution from oleochemical division and refineries and kernel crushing operations.

The property segment’s profit fell marginally to RM15.8mil caused by lower revenue of RM36.9mil.

For the first half to March 31, KLK posted a net profit of RM1.14bil, up 35% from RM847.85mil last year while revenue improved 50% to RM13.21bil against RM8.8bil previously.

On prospects, KLK said CPO price is expected to remain high in the near term.

“With the strong CPO price and intensified mechanisation efforts to alleviate

the labour shortage, we expect profit from the plantation segment to improve in the second half of the financial year,” it said.

As for the manufacturing segment, KLK said the hike in raw material prices and energy costs, coupled with persistent logistic issues continued to pose challenges in the current financial year.

Nevertheless, the group expects the segment’s performance to be satisfactory supported by robust demand with the recovery in the global economy.

“Overall, the group expects a good financial performance for the year ending Sept 30, 2022,” it said.

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