Batu Kawan FY22 net profit inches up to RM1.17bil

KUALA LUMPUR: Batu Kawan Bhd posted a slightly higher net profit of RM1.17 billion for the financial year ended Sept 30, 2022 (FY2022) compared to RM1.15 billion in the previous corresponding year, due to higher contributions recorded by all segments.

Revenue also increased to RM28.22 billion versus RM20.72 billion a year earlier, it said in a filing with Bursa Malaysia today.

For the fourth quarter ended Sept 30, 2022 (Q4 2022), the group’s net profit eased to RM222.79 million from RM308.04 million previously, while revenue stood at RM7.22 billion against RM6.16 billion in the same quarter last year.

The group’s plantation segment profit for FY2022 surged by 56.9 per cent or RM2.18 billion with a higher revenue of RM4.21 billion from stronger selling prices and higher sales volumes of crude palm oil (CPO) and palm kernel (PK), coupled with higher profit contribution from KLK Sawit Nusantara Bhd and newly acquired subsidiary PT Pinang Witmas Sejati.

However, the increase in the plantation’s profit was offset by a fair value loss of RM17.75 million on the valuation of unharvested fresh fruit bunches and higher CPO production costs, said the group.

Its manufacturing segment reported a 25.4 per cent higher profit of RM1.28 billion on 34.5 per cent higher revenue at RM23.54 billion, attributable to higher contributions from the oleochemical division.

The industrial chemical division’s profit jumped more than two-fold to RM209.10 million from higher average selling prices of caustic soda, in line with global prices.

Meanwhile, the property development’s profit was 3.4 per cent higher at RM71.58 million with a flat revenue of RM195.20 million.

On prospect, it said that in view of softening CPO prices since June 2022 due to the heightened risk of global recession, the group’s plantation segment profit for FY2023 is expected to be affected by escalating costs in fuel, fertilisers and agrochemicals.

For the group’s manufacturing segment, the oleochemical division expects headwinds for FY2023 due to raw material price volatility, high energy costs and softening demand.

"The group industrial chemical division anticipates rising energy costs and lower production attributable to plant upgrading works for FY2023,” it said. - Bernama

Article type: free
User access status:
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

Batu Kawan , CPO , plantation , manufacturing


Next In Business News

Exciting deals at Sunway Theme Parks Mega Roadshow
CPO futures likely to trade in yo-yo mode next week
Maybe Apple’s weakness isn’t just supply chain woes
Good news for the global economy
BP, Chubu Power to study CCS project at Nagoya
Short Position: Private equity exits, Managing cyber threats, Don’t kick the can down the road
Bonds surge as traders call time on hikes
Central banks continue fight against inflation
Defining market manipulation
Lee Chun Fai redesignated as IJM CEO and MD

Others Also Read