KLK, Batu Kawan post lower profit in 2Q18

Kuala Lumpur Kepong Bhd’s (KLK) net profit in second quarter ended March 31, 2018 (2Q18) dropped 34.64% year-on-year (YoY) to RM189.28 million as its plantations division’s profit was substantially lower by 49.8%.

In an exchange filing yesterday, the integrated edible oil group said the lower profit from the plantations division was due to a decline in the average selling prices of crude palm oil and palm kernel oil and increase in net unrealised foreign exchange translation loss to RM35.7 million on loans advanced and bank borrowings to its Indonesian subsidiaries.

Revenue for the quarter decreased 14.26% YoY to RM4.69 billion.

KLK’s controlling shareholder, Batu Kawan Bhd’s, net profit for same period declined 32.80% YoY to RM109.75 million due to the same reasons. Its revenue for the quarter dropped 13.75% YoY to RM4.83 billion.