The increment is due to the higher CPO and PK selling prices
by NURUL SUHAIDI / Pic by TMRgraphic
KUALA Lumpur Kepong Bhd (KLK) saw a higher net profit of RM546 million for the 2nd quarter ended March 31, 2022 (2QFY22) from RM490.4 million 2QFY21 mainly attributable to significantly higher crude palm oil (CPO) and palm kernel (PK) selling prices.
According to its filing to Bursa Malaysia, the group revenue soared to RM6.38 billion from RM4.51 billion compared to the same period last year.
The profit is derived from its business sectors such as manufacturing, plantation, property development, and investment holdings and corporate segment.
It said the higher profit for the manufacturing segment which rose by 18.2% to RM377.9 million this quarter is due to higher contribution from the oleochemical division, and refineries and kernel crushing operations.
For 2QFY22, the group also posted a higher earnings per share of 50.70 sen compared to 45.50 sen in 2QFY21.
The group said supply disruption due to Russia-Ukraine conflict will keep the CPO price to remain high in the near term and affect the plantation.
“However, with the strong CPO price and intensified mechanisation efforts to alleviate the labour shortage, we are positive that profit from the plantation segment will improve in the second half of the financial year,” it said.
On the manufacturing segment, the company said hike in raw material prices and energy cost, coupled with persistent logistic issues continue to pose challenges in the current FY.
Nevertheless, the group expects the segment’s performance to be satisfactory supported by robust demand with the recovery in the global economy.
“Overall, the group expects a good financial performance for the year ending Sept 30, 2022.”
The board has declared an interim single-tier dividend of two sen per share payable on Aug 2, 2022.