KUALA LUMPUR: KUALA LUMPUR KEPONG BHD [] (KLK) recorded a 12.1% increase in earnings to RM340.98 million in the first quarter ended Dec 31, 2011, boosted mainly by its PLANTATION []s business, when compared with RM304.18 million a year ago.
It said on Wednesday its revenue increased by 20.6% to RM2.923 billion from RM2.423 billion a year ago. Its earnings per share were 32.02 sen compared with 28.56 sen. Group's pre-tax profit rose 18.1% to RM463.20 million from RM392.28 million a year ago.
“Plantations profit climbed 24.5% to RM391.7 million on the back of higher revenue of RM1.31 billion (1QFY2011: RM1.08 billion),” it said.
The profit was boosted by higher selling prices for crude palm oil and rubber, higher fresh fruit bunches production, improved contribution from refinery operations with better margins.
There was also lower FRS 139's fair value loss of RM2.3 million compared with a loss of RM45.1 million a year ago.
However, its oleochemical division saw its margins squeezed by tough competition and a difficult macroeconomic landscape even though revenue grew 21.2% growth to RM1.24 billion due to improved sales volume.
“The recent change in the export duty structure of palm products in Indonesia had resulted in their oleochemical producers having an advantage of a 15% lower raw material cost,” said KLK, adding this had “grossly reduced” the profit margins for the Malaysian oleochemical producers.
KLK said this division ended the quarter with a lower profit of RM3.9 million (1QFY2011: profit RM23.1 million). The fair value loss of FRS 139 had decreased to RM13.0 million (1QFY2011: loss RM50.3 million).
“Retailing sector reported a 5.8% improvement in profit to RM56.7 million which was achieved through better margins and slightly higher revenue.
“PROPERTIES [] sector's profit of RM6.8 million was largely derived from the recognition of profit from two phases of the new project, Bandar Seri Coalfields in Sg Buloh, Selangor,” it said.
It said on Wednesday its revenue increased by 20.6% to RM2.923 billion from RM2.423 billion a year ago. Its earnings per share were 32.02 sen compared with 28.56 sen. Group's pre-tax profit rose 18.1% to RM463.20 million from RM392.28 million a year ago.
“Plantations profit climbed 24.5% to RM391.7 million on the back of higher revenue of RM1.31 billion (1QFY2011: RM1.08 billion),” it said.
The profit was boosted by higher selling prices for crude palm oil and rubber, higher fresh fruit bunches production, improved contribution from refinery operations with better margins.
There was also lower FRS 139's fair value loss of RM2.3 million compared with a loss of RM45.1 million a year ago.
However, its oleochemical division saw its margins squeezed by tough competition and a difficult macroeconomic landscape even though revenue grew 21.2% growth to RM1.24 billion due to improved sales volume.
“The recent change in the export duty structure of palm products in Indonesia had resulted in their oleochemical producers having an advantage of a 15% lower raw material cost,” said KLK, adding this had “grossly reduced” the profit margins for the Malaysian oleochemical producers.
KLK said this division ended the quarter with a lower profit of RM3.9 million (1QFY2011: profit RM23.1 million). The fair value loss of FRS 139 had decreased to RM13.0 million (1QFY2011: loss RM50.3 million).
“Retailing sector reported a 5.8% improvement in profit to RM56.7 million which was achieved through better margins and slightly higher revenue.
“PROPERTIES [] sector's profit of RM6.8 million was largely derived from the recognition of profit from two phases of the new project, Bandar Seri Coalfields in Sg Buloh, Selangor,” it said.
