Kulim’s 2Q net profit rises 50%

by **Cals** Tue 26 Aug 2014, 09:47

Business & Markets 2014

Written by Adrian Wong of theedgemalaysia.com

Monday, 25 August 2014 19:32

KUALA LUMPUR: Kulim (M) Bhd saw its net profit rise by nearly 50% to RM98.43 million or 7.7 sen a share in the second quarter ended June 30, 2014, while revenue rose 3.2% to RM817.5 million.

The jump in its net profit was due to better operating margins, as well as other operating income of RM48 million. Overall, the performance was buoyed by the group’s higher fresh fruit bunches (FFB) production, which translated into higher revenue.

The group’s FFB production in Malaysia for the second quarter of 2014 stood at 196,629 metric tonnes, as compared to 179,466 metric tonnes in 2Q13, while its unit, New Britain Palm Oil Group Ltd, which operates in Papua New Guinea and Solomon Island, also produced 14.22% more in FFB in 2Q14 at 485,958 metric tonnes.

In the six months ended June 30, 2014, group net profit fell sharply to RM136.57 million against last year's corresponding period of RM411.26 million. This was due to the lost of profits from discontinued operations. Nevertheless, profit from continued operations registered a strong gains to RM236.56 million, from RM30.1 million previously.

Cumulative revenue rose to RM1.65 billion, compared to RM1.51 billion in the corresponding six months last year.

Kulim expects to achieve improved FFB,crude palm oil (CPO) and palm kernel productions, compared to 2013. Additionally, the group is also confident that CPO price for the coming periods would improve, from the current level. “The board is of the view that the group’s performance for the remaining periods and for the year, to be better than the preceding year,” it said in the notes accompanying its result.

Kulim’ stock price closed at RM3.30 today, down 5 sen from its previous close at RM3.35. At this price, it has a market capitalisation of RM4.2 billion.