Plantation segment drags down KLK earnings

Plantation segment drags down KLK earnings
Business & Markets 2013
Written by Zatil Husna Wan Fauzi of theedgemalaysia.com
Wednesday, 21 August 2013 10:13

KUALA LUMPUR: KUALA LUMPUR KEPONG BHD [] (KLK) recorded a lower net profit of RM189.16 million for its third quarter ended June 30, 2013 (3QFY13), against RM233.09 million a year ago due to lower contributions from its PLANTATION [] and manufacturing segments.

Profit from its plantation segment was sharply lower by 47.9% to RM114.8 million on weaker selling prices of commodities, coupled with higher production cost of both crude palm oil (CPO) and rubber.

In a filing with Bursa Malaysia yesterday, KLK said the average CPO selling price realised was RM2,260, down from RM3,010 previously.

Its manufacturing segment's profit slipped 12.1% to RM69.1 million from RM78.6 million a year ago on the back of a 10.6% drop in revenue to RM1.17 billion.

The group's oleochemical segment also reported a 13% reduction in profit to RM72.9 million, while the other manufacturing units incurred a lower loss of RM3.8 million. Lower prices resulted in the oleochemical division's revenue easing 10.5% to RM1.15 billion from RM1.28 billion previously.

KLK's property segment saw a surge in profit to RM22.9 million from RM14.7 million previously, with an increase in profit recognition from its development in Bandar Seri Coalfields in Sungai Buloh, Selangor.

For the nine months to June 30, KLK registered a lower net profit of RM659.74 million, from RM788.98 million previously. Revenue was down by 17.4% to RM6.73 billion.



This article first appeared in The Edge Financial Daily, on August 21, 2013.