MARKET DEVELOPMENT
Kim Loong Q3 net profit rises to RM41.09mil
Kim Loong Q3 net profit rises to RM41.09mil
28.12.2021 (www.thestar.com.my) - KUALA LUMPUR: Kim Loong Resources Bhd
posted a higher net profit of RM41.09 million for the third quarter ended Oct 31, 2021 (Q3), from RM28.84 million registered in the same quarter last year.
Revenue jumped to RM492.80 million in the period under review from RM278.60 million previously.
The group achieved record-high revenue and profit before tax at RM1.21 billion and RM161.99 million respectively for the cumulative three quarters ended Oct 31, 2021, as compared to RM717.94 million and RM127.58 million respectively for the corresponding period a year ago.
The remarkable performance for the current financial year-to-date was mainly due to higher average selling prices of fresh fruit bunches (FFB) and crude palm oil (CPO).
"The plantation operations did not face a problem in selling its FFB production as most of the produce was supplied to mills within the group,” it said in a filing with Bursa Malaysia today.
The higher revenue from the milling operations for the current quarter and year-to-date as compared to the corresponding periods last year was mainly contributed by higher average CPO selling price.
"The market condition and demand for the group’s milling products have been good and steady for the current quarter and year-to-date,” it said.
The group also declared a special single tier dividend of four sen per share for the financial year ending Jan 31, 2022 (FY 2022), payable on Feb 17, 2022.
On prospects, Kim Loong expects that an additional 27,000 tonnes of FFB could be produced in FY 2022 from the 1,099.69 hectares the group has taken physical possession of on Feb 9, 2021.
"Based on the recent observation of production output, the management forecasts the FFB production for FY 2022 could be about 95 per cent of the quantity achieved in FY 2021 after taking into consideration the impact of ongoing replanting programme, labour shortage and seasonal factor on cropping trend,” it said.
As for palm oil milling operations, the company said the management expects a total processing quantity of about 1.45 million tonnes of FFB which is close to 10 per cent higher than FY 2021.
"The performance of the milling operations will also be supplemented by revenue of about RM5 million from supplying power to the grid,” it added. - Bernama