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BusinessToday
22-05-2025
- Business
- BusinessToday
KLK 2Q Profit Falls To RM154 Million, Hit By Overseas Associate Losses, FX Impact
Kuala Lumpur Kepong Bhd Kuala Lumpur Kepong Berhad (KLK) posted a lower net profit of RM154 million for its second quarter ended March 31, 2025 (2QFY25), down from RM220 million in the preceding quarter, despite a rise in group revenue to RM6.3 billion, compared to RM5.9 billion in 1QFY25. On a year-on-year basis, KLK's 2Q pre-tax profit rose 15% to RM269.9 million from RM234.7 million in 2QFY24, supported by a 16.2% increase in revenue to RM6.34 billion. Segmental Performance Manufacturing The group's manufacturing segment narrowed its loss to RM38.3 million, compared to RM53.4 million in 1QFY25. The improvement was largely driven by: Higher revenue of RM5.42 billion (1QFY25: RM4.76 billion), Stronger profit contribution from the Oleochemical division, and A smaller loss from its non-oleochemical operations. However, the segment continued to be weighed down by losses in its refinery and kernel crushing operations. Property Development The property segment saw its profit slump 53.4% to RM3.5 million, from RM7.5 million in 1QFY25, on lower revenue of RM39.7 million (1QFY25: RM44.1 million), reflecting a slower property market. Investment Holding/Others This segment posted a larger loss of RM94.8 million, widening from RM58.1 million in the previous quarter. The decline came despite a stronger farming profit of RM34.6 million (1QFY25: RM186,000), as the group absorbed a RM63.3 million equity loss from its UK-listed associate Synthomer plc, which continues to face performance headwinds. Net corporate expenses increased to RM54.8 million (1QFY25: RM50.6 million), mainly due to a larger foreign exchange loss of RM40 million from the translation of intercompany loans denominated in foreign currencies. This was partly offset by a RM3.9 million gain from land sales and government acquisitions. Despite challenges in its manufacturing and investment holding arms, KLK remains supported by steady revenue growth and contributions from its oleochemical business. However, the group's near-term profitability may remain volatile due to external pressures, particularly from its overseas associate performance and currency fluctuations Related
New Straits Times
02-05-2025
- Business
- New Straits Times
Ministry passes key data to Malaysia's chief negotiator for tariff talks with US
KUALA LUMPUR: The Plantation and Commodities Ministry has presented key trade data to Malaysia's chief negotiator for the upcoming formal tariff negotiations with the US. Its minister Datuk Seri Johari Abdul Ghani said the data highlights the strength and value of Malaysia's commodity exports to the US in supporting the country's trade position. "The US is not our biggest buyer as Europe, India and China account for over 40 per cent of our palm oil exports. "However, with total global agri-commodity exports standing at RM186 billion, the US is still an important part of the equation," Johari told a press conference at the Malaysia Palm Oil Industry's (MPOB) silver jubilee gala night held in conjunction with its 25th anniversary. The event celebrated the contributions of various stakeholders and MPOB's strategic partners who have collaborated and shared their expertise in advancing the nation's palm oil industry. MPOB also recognised the media and individuals who have made significant contributions to the development of the palm oil sector. Meanwhile, in his speech, Johari said in 2024, Malaysia produced 19.3 million tonnes of crude palm oil. The country generated RM114.4 billion in export revenue, with palm oil remaining the country's third-largest export contributor. "To ensure the palm oil industry continues to contribute to the national economy, a holistic approach is crucial. "Our efforts will focus on increasing yields through the use of high-quality planting materials, replanting at the recommended rates, adopting the latest milling and processing technologies, and ensuring the quality of sustainable palm oil products," he said. Johari credited MPOB for driving technological innovation, having commercialised more than 200 high-impact technologies, adding over RM5.9 billion in market value. "May MPOB remain dynamic in strengthening world-class research, expanding international strategic collaborations, and ensuring that the industry's benefits reach all stakeholders, especially smallholders, who are the backbone of the nation's palm oil sector," he said.
