KLK posts higher 2Q profit on lower taxation

by NUR HAZIQAH A MALEK / pic by TMR FILE PIX

Kuala Lumpur Kepong Bhd’s (KLK) second-quarter (2Q19) net profit increased by 35% year-on-year (YoY) to RM142.96 million due to a 51.5% lower taxation against the previous year.

KLK’s revenue for the quarter ended March 31, 2019, amounted to RM3.94 billion, which was 15.9% lower YoY due to a lack of pricing power at its plantation and manufacturing businesses.

The plantation and manufacturing segments’ contribution to earnings decreased by 55.8% and 18.5% respectively, while its property development segment increased by 7.8%.

The group’s plantation division’s profit fell to RM100.9 million due to weaker selling prices of crude palm oil and palm kernel, its exchange filing yesterday noted.

KLK’s manufacturing segment posted a lower profit of RM93.34 million for the period compared to RM98 million in 1Q18 on lower selling prices, as well as an unrealised loss of RM5 million from changes in outstanding derivative contracts’ fair value.

Moving forward, the group’s operational profits are expected to be lower for the full financial year.

The company has made a net profit of RM393.9 million or 37 sen earnings per share for the first half of this financial year on the back of RM8 billion revenue.

KLK declared an interim single-tier dividend of 15 sen per share, which will be paid to shareholders on Aug 6, 2019.