Batu Kawan 4Q profit falls 39%, pays 40 sen dividend

by **Cals** Wed 20 Nov 2013, 18:35

Business & Markets 2013

Written by Zatil Husna of theedgemalaysia.com

Wednesday, 20 November 2013 17:53

KUALA LUMPUR (Nov 20): Batu Kawan Bhd’s net profit fell 39.2% in the fourth quarter ended September 30, 2013 (4QFY13) from a year earlier.The lower profit came on lower income from plantation associate Kuala Lumpur Kepong Bhd (KLK).

In a statement to the exchange, Batu Kawan said it posted a RM125.4 million net profit in 4QFY13 compared to RM206.4 million. Revenue rose 14.9% to RM99.7 million from RM86.7 million

"The group revenue for the current quarter under review increased 15% to RM99.65 million (2012: RM86.71 million) with all segments reported higher revenues.

"However, group profit before tax dropped 31% to RM146.33 million (2012: RM211.80 million) mainly affected by lower profit contribution from our
plantation associate, Kuala Lumpur Kepong Bhd," Batu Kawan said.

For the quarter in review, Batu Kawan plans to pay a dividend of 40 sen a share. This brings the full-year payout to 55 sen.

For the full-year, Batu Kawan's net profit fell 20.1% to RM483.7 million from RM605.7 million a year earlier. Revenue came to RM362 million, a 7.6% increase from RM336.5 million.

Looking forward, the group expects its FY14 profit to be higher than FY13.

“The group’s profit for the financial year ending 2014 is expected to be higher than that of the previous financial year on expectation of better profit from our plantation associate, KLK due to increased FFB production and its new Indonesian refineries coming on-stream, the latter of which should improve margins,” it said.