PETALING JAYA: Kuala Lumpur Kepong Bhd (KLK) announced better 4QFY11 ended Sept 30 results yesterday, posting RM460.6 million in net earnings, an increase of 48.1% from RM311 million reported during the same period last year, as high production costs were offset by higher selling prices of commodities.
Group revenue jumped during the quarter under review to RM3 billion from RM2.01 billion during the same period last year, an increase of about RM1 billion or 48.9% year-on-year (y-o-y). Pre-tax profit increased by 38.3% to RM599.25 million from RM433.29 million a year ago, boosted by the non-recurring surplus of RM200.6 million arising from the disposal of an associate company, Esterol Sdn Bhd.
“[The] plantations sector recorded a 27.7% improvement in profit to RM447.5 million on account of better selling prices of commodities and increase in FFB (fresh fruit bunch) production despite higher production cost and FRS 139’s fair value loss of RM27.1 million,” the group said in an announcement posted on Bursa Malaysia’s website.
For the whole of FY11ended Sept 30, the group chalked up RM1.57 billion in net earnings or 147.56 sen a share, compared with RM1.01 billion for FY10. Revenue for FY11 was RM10.74 billion, an increase of RM3.3 billion or 43.4% from FY10’s RM7.49 billion. Profit before tax was RM2.07 billion, up from RM1.38 billion for FY10.
According to the group’s announcement, the markedly better performance for FY11 was due to the higher average selling prices for its main commodities, crude palm oil (CPO), palm kernel and rubber. During 4QFY11, the average selling price of CPO was RM2,958 per tonne (ex-mill) compared with RM2,432 per tonne a year ago, while palm kernel was traded at the average of RM1,839 per tonne (ex-mill) against RM1,518 per tonne last year.
Its plantations division continues to contribute a large chunk of the group’s profit before tax at RM1.6 billion against the total group’s PBT of RM2.07 billion. However, profit contribution from its manufacturing division increased by 40.1% to RM201.9 million for FY11, on the back of improved revenue of RM5.14 billion, up 58.2% from FY10.
“[The] manufacturing sector achieved a 40.1% increase in profit to RM201.9 million despite the loss suffered in 4Q. The results for the year benefited from added capacities coming onstream as well as a relatively strong business environment in the earlier part of the year,” the group said.
Despite the sterling performance for FY11, the group said it is difficult to ascertain its profit for FY12 ending Sept 30, due to the uncertainties in the global economy and the effect of the eurozone debt crisis.
“We are, however, confident that the fundamentals of our plantations business remain sound based on our commitment to improve efficiencies and productivity. The group anticipates satisfactory returns from the plantations sector for the current financial year,” it said.
A final single-tier dividend of 70 sen per share has been recommended by the group’s directors for FY11, subject to approval at the forthcoming AGM, the group said. The dividend will be paid on March 16, 2012 to shareholders registered on the company’s Register of Members as at Feb 23, 2012. For FY11, total dividends declared/paid amount to 85 sen per share.
KLK closed 38 sen higher yesterday at RM21.38.
This article appeared in The Edge Financial Daily, November 24, 2011.
Group revenue jumped during the quarter under review to RM3 billion from RM2.01 billion during the same period last year, an increase of about RM1 billion or 48.9% year-on-year (y-o-y). Pre-tax profit increased by 38.3% to RM599.25 million from RM433.29 million a year ago, boosted by the non-recurring surplus of RM200.6 million arising from the disposal of an associate company, Esterol Sdn Bhd.
“[The] plantations sector recorded a 27.7% improvement in profit to RM447.5 million on account of better selling prices of commodities and increase in FFB (fresh fruit bunch) production despite higher production cost and FRS 139’s fair value loss of RM27.1 million,” the group said in an announcement posted on Bursa Malaysia’s website.
For the whole of FY11ended Sept 30, the group chalked up RM1.57 billion in net earnings or 147.56 sen a share, compared with RM1.01 billion for FY10. Revenue for FY11 was RM10.74 billion, an increase of RM3.3 billion or 43.4% from FY10’s RM7.49 billion. Profit before tax was RM2.07 billion, up from RM1.38 billion for FY10.
According to the group’s announcement, the markedly better performance for FY11 was due to the higher average selling prices for its main commodities, crude palm oil (CPO), palm kernel and rubber. During 4QFY11, the average selling price of CPO was RM2,958 per tonne (ex-mill) compared with RM2,432 per tonne a year ago, while palm kernel was traded at the average of RM1,839 per tonne (ex-mill) against RM1,518 per tonne last year.
Its plantations division continues to contribute a large chunk of the group’s profit before tax at RM1.6 billion against the total group’s PBT of RM2.07 billion. However, profit contribution from its manufacturing division increased by 40.1% to RM201.9 million for FY11, on the back of improved revenue of RM5.14 billion, up 58.2% from FY10.
“[The] manufacturing sector achieved a 40.1% increase in profit to RM201.9 million despite the loss suffered in 4Q. The results for the year benefited from added capacities coming onstream as well as a relatively strong business environment in the earlier part of the year,” the group said.
Despite the sterling performance for FY11, the group said it is difficult to ascertain its profit for FY12 ending Sept 30, due to the uncertainties in the global economy and the effect of the eurozone debt crisis.
“We are, however, confident that the fundamentals of our plantations business remain sound based on our commitment to improve efficiencies and productivity. The group anticipates satisfactory returns from the plantations sector for the current financial year,” it said.
A final single-tier dividend of 70 sen per share has been recommended by the group’s directors for FY11, subject to approval at the forthcoming AGM, the group said. The dividend will be paid on March 16, 2012 to shareholders registered on the company’s Register of Members as at Feb 23, 2012. For FY11, total dividends declared/paid amount to 85 sen per share.
KLK closed 38 sen higher yesterday at RM21.38.
This article appeared in The Edge Financial Daily, November 24, 2011.
