Highlight Kulim 1Q profit plunges 89% yoy to RM38.1m

by **Cals** Tue 27 May 2014, 03:07

Highlight Kulim 1Q profit plunges 89% yoy to RM38.1m

Business & Markets 2014

Written by Jeffrey Tan of theedgemalaysia.com

Monday, 26 May 2014 18:45

KUALA LUMPUR (May 26): Kulim (Malaysia) Bhd’s net profit plunged 89% year-on-year (y-o-y) to RM38.1 million in the first quarter ended Mar 31, 2014, from RM345.1 million in the first quarter of last year.

However, revenue grew 16.1% y-o-y to RM829.7 million from RM714.8 million.

In a statement to the stock exchange, the plantation firm said its poor net profit was due to higher expenses excluding finance cost and tax, and higher income tax expense.

The significantly lower net profit was also due to a higher base comparison in the same quarter last year, as the company had made a one-off profit from a discontinued operation net of tax of RM339.3 million.

Nevertheless, Kulim said its fresh fruit bunches (FFB) production rose 11.53% y-o-y to 177,399 metric tonnes, from 159,059 metric tonnes a year ago.

The firm said its cumulative crude palm oil (CPO) production rose 16.33% y-o-y to 59,964 metric tonnes, from 51,545 metric tonnes.

On total FFB processed, the firm said this rose 13.62% y-o-y to RM287,569 metric tonnes, from 253,091 metric tonnes.

It added oil extraction rate was marginally higher at 20.85%, compared to 20.37% in the previous corresponding quarter.

Furthermore, Kulim said its plantation operation in Papua New Guinea & Solomon Island reported higher FFB production and higher FFB processed.

“Palm products prices have softened from the year’s high, but the prices have stayed at comparatively buoyant levels,” said Kulim on current year prospects.

“Malaysia’s FFB productions look promising towards exceeding last year’s production, unless the forecast prolonged dry season in the second half of the year materialises.”