Kim Loong lowers production target by 6 pct to 310,000 tonnes
29/09/2026 (Business Times), Kuala Lumpur - Kim Loong Resources Bhd had lowered its production target for fresh fruit bunches (FFB) of oil palm by six per cent to 310,000 tonnes for the financial year ending Jan 31, 2027 (FY27).
The revised target came after considering the lower-than-expected FFB production achieved in the first half of the year to July 31, as well as the improved age profile of young productive palms and on-going replanting programme, it said.
"The group targets to replant about 700 hectares in the financial year 2027," said Kim Loong, in a filing with Bursa Malaysia announcing its financial results for the second quarter ended July 31, 2026 (Q2 FY27).
During the quarter, Kim Loong registered five per cent lower net profits of RM44.94 million, compared with RM47.3 million in the corresponding quarter, on the back of three per cent lower revenue of RM422.76 million.
The lower revenue was partly due to the 17 per cent decline in FFB production during the quarter, to 72,438 tonnes, resulting in 15 per cent lower yield per hectare of 5.23 tonnes. Nevertheless, 14 per cent higher average FFB price during the quarter softened the impact.
Despite the weak performance in Q2, Kim Loong's first half net profits were 12 per cent higher, at RM100.12 million, due to its better first quarter results. Kim Loong declared an interim single tier dividend of five sen for FY27.
While projecting a lower FFB production this year, Kim Loong expects to achieve an optimum processing throughput of 1.6 million tonnes for its palm oil million operations.
Kim Loong expects the impact of lower FFB production target wil be partly cushioned by better crude palm oil (CPO) average price. The group expects the average CPO price to hover between RM4,500 and RM4,800 per tonne in FY27.