PETALING JAYA: Oil palm planter Kim Loong Resources Bhd
has revised its production forecast for the current financial year, now targeting a 6% to 8% growth in fresh fruit bunch (FFB) output versus 5% to 10% earlier.
The adjustment was made as the group’s FFB production grew 3% year-on-year (y-o-y) in the first nine months of the financial year ending Jan 31, 2026 (9M26).
The stronger output, along with the 10% y-o-y increase in the average FFB selling price, have helped raise the plantation division’s profits by 20% in 9M26.
However, profits from Kim Loong’s palm oil milling business dropped 20% due to lower processing margin as well as higher repair and maintenance costs.
Kim Loong manages eight estates across Johor, Sabah, and Sarawak, according to its website. Total planted area as of end-October 2025 was 15,929 ha.
Overall, for the nine-month period, Kim Loong reported a net profit decline by 4.2% y-o-y to RM133.11mil.
Meanwhile, revenue rose by 6.1% y-o-y to RM1.32bil.
As for the third quarter ended Oct 31, 2025 (3Q26) Kim Loong’s net profit was down 12.2% y-o-y to RM43.88mil, translating to a lower earnings per share of 4.47 sen.
The group’s revenue, however, improved by 5.1% y-o-y to RM469.03mil.
Kim Loong’s plantation division recorded higher revenue and profit in the 3Q26 on the back of higher FFB price, despite a marginal drop in the FFB output.
The milling operations, on the other hand, saw higher revenue in the three-month period due to 5% higher average crude palm oil (CPO) prices.
Despite the stronger topline, net profit fell 28% mainly due to higher repair and maintenance costs.
On a sequential basis, Kim Loong’s profit from plantation operations increased by 5% or RM1.82mil to RM40.28mil as compared to RM38.46mil in the preceding quarter.
This was mainly due to an 11% increase in the average FFB selling price, despite a 6% drop in the FFB production in the current quarter.
For the milling operations, despite the higher average CPO selling price and CPO quantity sold in the current quarter, the profit from milling operations for the current quarter dropped by 22% to RM26.93mil.
This is compared to RM34.63mil recorded for the preceding quarter due to higher repair and maintenance costs.
“Total FFB processed in the current quarter decreased by 4% to 407,000 tonnes as compared to 422,000 tonnes in the preceding quarter,” according to the group.
Kim Loong declared a three-sen dividend for the third quarter, bringing the cumulative year-to-date dividend payout to eight sen per share.
The three-sen dividend will be paid on Feb 10, 2026.
Looking ahead, Kim Loong told investors that it expects to perform satisfactorily for the financial year 2026.
“The group targets to replant about 300 to 500 hectares in the financial year 2026.
“As for palm oil milling operations, the management expects to achieve a total processing throughput of 1.6 million tonnes of FFB for the current financial year.
“In terms of CPO price prospects, the management expects the average CPO price for the financial year 2026 to stay above RM4,200 per tonne,” it said in a filing with Bursa Malaysia.
