KUALA LUMPUR: Batu Kawan Bhd
, which saw its net profit tumble 76.3% to RM52.7mil in the fourth quarter ended Sept 30 (4Q), is cautiously optimistic of its prospects for the financial year 2024 (FY24).
Its revenue for the quarter fell 16.8% to RM6bil against RM7.2bil a year prior while earnings per share dipped to 13.41 sen from 56.55 sen previously.
For FY23, Batu Kawan's net profit tumbled 58.2% to RM490.9mil from RM1.17bil in FY22 while revenue fell 12.6% to RM24.6bil against RM28.2bil achieved last year.
The group said crude palm oil (CPO) prices have ranged between RM3,700 and RM4,000 per tonne.
“Uncertainty about the full impact of El-Nino on production and thus prices, will continue in the new year. However, global oilseeds production are projected to increase in the next season and this will moderate expectations. Other macro-economic uncertainties will continue to make the year challenging,” Batu Kawan said in the notes accompanying its financial results.
“Current expectations may suggest range-bound prices for palm oil due to subdued demand. Despite the effect of El-Nino in reducing production, the group's Plantation segment remains focused on improving productivity and yields through various on-the-ground actions,” it said, adding that its oleochemical division remained challenging with weakness in consumer demand and high energy costs impacting particularly its businesses in Europe.
The group’s industrial chemical division anticipates some product price erosion with competition from competitors and energy costs expected to remain elevated.
