26/03/2024 (The Edge Malaysia), Kuala Lumpur - Plantation firm Kim Loong Resources Bhd’s net profit for the fourth quarter ended Jan 31, 2024 (4QFY2024) fell 32.09% to RM24.87 million, from RM36.61 million a year ago, on weaker palm oil prices.

This is the weakest quarterly earnings in three years since 4QFY2021 when it delivered a net profit of RM10 million.

Earnings per share for the quarter under review came in at 2.56 sen against 3.79 sen in 4QFY2023, the group’s bourse filing showed. 

Quarterly revenue also dropped 15.44% to RM365.16 million, from RM431.82 million a year before.

The planter declared a second interim single tier dividend of five sen per share, payable on May 15, 2024, taking the total dividend payout to 13 sen for FY2024, versus 15 sen in FY2023. 

For the full year, net profit dipped 8.97% to RM147.71 million from RM162.26 million a year earlier, as full year revenue declined by 20.02% to RM1.53 billion from RM1.91 million.

Kim Loong attributed the weaker annual performance to a sharp decline in both the average selling prices of fresh fruit bunches (FFB) and crude palm oil (CPO), which fell by 23% and 22% respectively.

For FY2024, the average selling price (ASP) for CPO stood at RM3,819 per tonne, and FFB at RM712.

In comparison, CPO’s ASP was RM4,898 per tonne and FFB RM920 in FY2023.

On its prospects, the management targets to achieve at least 5% higher FFB production for the current financial year ending Jan 31, 2025 (FY2025), after taking into account the better age profile of young palm productive area and on-going replanting programme.

The group has targeted to replant about 1,000 hectares in FY2025.

For palm oil milling operations, the management targets to achieve a total processing throughput of 1.6 million tonnes of FFB. It also expects its biogas plant at Telupid, which has commenced supply of power to grid since December 2023, to contribute positively to revenue as well as profit from FY2025 onwards.

“Based on the above, we expect the group to perform satisfactorily for FY2025,” it added.

On Tuesday, Kim Loong closed unchanged at RM2.17, valuing the group at RM2.12 billion.

Over the past one year, the stock has gained 23%.

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