Kim Loong pays five sen dividend as 2Q profit jumps 20% on higher FFB, milling output
29/09/2025 (The Edge Malaysia), Kuala Lumpur - Plantation group Kim Loong Resources Bhd (KL:KMLOONG) reported a 19.75% jump in its second-quarter net profit, mainly driven by higher production of fresh fruit bunches (FFB) and an increase in selling prices, as well as higher oil extraction rate achieved at its palm oil mills.
The group's net profit for the second quarter ended July 31, 2025 (2QFY2026) rose to RM47.31 million from RM39.5 million in 2QFY2025, with revenue rising 7.45% to RM436.19 million from RM405.94 million.
The company declared an interim dividend of five sen per share, same as last year, payable on Nov 13.
Its plantation segment's profit grew by 17% to RM38.46 million in 2QFY2026 from RM32.79 million in 2QFY2025, with revenue increasing 13% to RM69.02 million. This is attributed to the average FFB selling price rising 6% to RM794 per tonne, up from RM748 per tonne a year ago, while FFB production also improved by 6% to 86,942 tonnes from 81,894 tonnes.
The milling segment’s profit jumped 25% to RM34.63 million, with revenue expanding 8% to RM427.71 million, as crude palm oil (CPO) production grew 8% to 88,256 tonnes from 81,406 tonnes. Volume of CPO sold also climbed, rising 4% to 86,192 tonnes. Oil extraction rate rose to 20.9% during the quarter, up from 20% a year ago.
For the first half of FY2026 (1HFY2026), the group’s net profit was little changed at RM89.23 million, compared with RM89.02 million in 1HFY2025, even as revenue expanded 6.75% to RM847.91 million from RM794.32 million. This was largely due to a 15% drop in its palm oil milling profit.
Looking ahead, the group targets to achieve a 5% to 10% increase in FFB production for the current financial year ending Jan 31, 2026 (FY2026), on account of the improved age profile of its productive palms and ongoing replanting programme. The group also targets to replant about 300 to 500 hectares in FY2026.
In its palm oil milling operations, the group expects to achieve a total processing throughput of 1.6 million metric tonne (MT) of FFB for FY2026. Management expects the average CPO price, which stood at RM4,012 per tonne in 2QFY2026, to stay above RM4,000 per MT for FY2026.
On Monday, Kim Loong’s shares closed one sen or 0.43% lower at RM2.33, giving the group a market capitalisation of RM2.29 billion.