Latest news with #RM21.50
New Straits Times
27-05-2025
- Business
- New Straits Times
KLK's earnings set to improve as derivatives losses recede, says CIMB Securities
KUALA LUMPUR: Kuala Lumpur Kepong Bhd (KLK) is expected to register a higher second half of (2H) financial year 2025 (FY25) net profit in absence of derivatives losses, said CIMB Securities Research. The research house said KLK lowered its FY25 fresh fruit bunch (FFB) output guidance to mid-single-digit growth but remains positive about 2H prospects, supported by improved production. "This suggests that 2HFY9/25 production could account for about 52 per cent of full-year output, supporting earnings momentum, although this will be partly offset by lower current crude palm oil (CPO) prices," it said. Meanwhile, CIMB Securities said KLK recorded a 2.5 per cent year on year (yoy) decline in ex-mill CPO production costs to RM2,100/tonne in 1HFY25, driven by lower fertiliser prices. However, the firm said refining margins are expected to remain weak, the glove division is still loss-making, and gas supply disruptions have affected oleochemical plant efficiency in third quarter (Q3) FY25. "KLK shared that the RM252 million in derivatives losses in 1HFY25 was mainly related to unrealised US dollar hedges of RM143 million. "We maintain our Hold call with an unchanged target price of RM21.50," it added.
Malay Mail
02-05-2025
- Business
- Malay Mail
US sales slide, but McDonald's stays resilient abroad amid rising anti-American mood
NEW YORK, May 2 — Fast food giant McDonald's reported a drop in first-quarter profits yesterday as US traffic from low- and medium-income customers diminished amid economic anxiety in the wake of President Donald Trump's trade wars. The chain's home market of the United States saw a 3.6-per cent drop in comparable sales, more than the 1 per cent fall globally. 'The big thing is people are just visiting less and that speaks to the pressures on consumers, consumer sentiment,' Chief Financial Officer Ian Borden said in a conference call with analysts. 'The things that we've been talking about for a while now — inflationary pressures, interest rates that are weighing obviously, particularly on lower consumers, and that's spilling over into middle-income consumers right now,' he said. Executives said there had been no drop in spending from higher-income consumers. The company said it plans more promotions centred on its 'McValue' platform, which includes limited-time US$5 meal (RM21.50) combinations featuring a sandwich, Chicken McNuggets, fries and a drink. Profits came in at US$1.9 billion, down 3 per cent, while revenues also fell 3 per cent to US$6 billion. The chain described a 'mixed' performance across international businesses, flagging weakness in the United Kingdom, but a strong performance in the Middle East and Japan. Company polling has shown the chain has not suffered due to a rise in anti-US sentiment in international markets, CEO Christopher Kempczinski said in response to an analyst question. 'We've seen an uptick in anti-American sentiment, call it, eight to 10 points increase in anti-American sentiment,' Kempczinski said of company surveys that have shown the biggest negative impact in Northern Europe and Canada. 'That's had no impact on our business and consumer sentiment toward the McDonald's brands remains strong,' he said. Shares of McDonald's fell 1.3 per cent in afternoon trading. — AFP
