The Star Online (16/05/2019) - PETALING JAYA: Plantation company Kuala Lumpur Kepong Bhd image: https://cdn.thestar.com.my/Themes/img/chart.png’s (KLK) net profit in its second quarter ended March 31, 2019 (2Q19) rose 34.6% to RM142.95mil from RM106.15mil a year ago, mainly due to a surplus of RM25.6mil arising from government acquisition of plantation land.

In a Bursa Malaysia filing yesterday, the company said its property segment had also recorded a higher profit of RM7.1mil in 2Q19 from RM6.6mil a year ago despite a decline in revenue to RM34.8mil in the quarter.

For its plantation sector, net profit dipped 55.8% to RM100.9mil from RM228.4mil previously, dragged by weaker selling prices of crude palm oil and palm kernel.

Moreover, KLK’s manufacturing division net profit was also down by 18.5% to RM93.3mil for the quarter from RM114.5mil due to a 14.5% revenue decline owing to lower selling prices.

Overall, the company’s revenue for the quarter was down 15.8% to RM3.94bil from RM4.68bil, dragged by the decline in revenue from the manufacturing, plantation and property divisions.

Meanwhile, KLK’s parent company, Batu Kawan Bhd image:https://cdn.thestar.com.my/Themes/img/chart.png’s net profit for the second quarter was up 41.6% to RM79.28mil from RM55.96mil a year ago, mainly driven by earnings from the farming segment and a surplus from government acquisition of plantation land.

Its revenue was down 15.5% to RM4.07bil from RM4.83bil a year ago.