KLK to gain from lower fertiliser prices

HLIB Research expects production cost to continue to trend downwards in FY24 mainly due to lower fertiliser prices.

PETALING JAYA: Kuala Lumpur Kepong Bhd’s (KLK) crude palm oil (CPO) production cost will likely have peaked in the third quarter of financial year 2023 (3Q23) as seasonally higher 4Q23 fresh fruit bunch (FFB) production will bring unit production cost lower, says Hong Leong Investment Bank (HLIB) Research.

Based on a recent virtual meeting with KLK, the research house expects production cost to continue to trend downwards in FY24 mainly due to lower fertiliser prices.