KUALA LUMPUR Kepong Bhd (KLK) noticed a pointy decline in internet revenue for the third quarter ended June 30, 2023 (3Q23), with a lower of 84.9% to RM84.1 million in comparison with RM558.27 million in the identical interval final yr.
The drop was primarily because of a 26.5% lower in income, which fell to RM5.11 billion from RM6.96 billion.
The corporate’s plantation section revenue was severely affected, dropping by 78.8% to RM125.9 million because of decrease promoting costs of crude palm oil (CPO) and palm kernel (PK), together with greater CPO manufacturing prices.
KLK’s manufacturing section reported a lack of RM73.7 million, primarily attributed to decreased income of RM4.315 billion and losses incurred by the oleochemical division, which confronted decreased demand and revenue margins.
Over the cumulative nine-month interval, KLK’s internet revenue decreased to RM717.95 million from RM1.7 billion a yr earlier, whereas income declined to RM17.87 billion from RM20.17 billion.
Regardless of challenges, KLK declared an interim single tier dividend of 20 sen for the monetary yr ending September 30, 2023.
Wanting ahead, KLK anticipates slight enhancements in contemporary fruit bunch and CPO yields in comparison with the earlier yr, although manufacturing prices stay excessive because of elevated enter costs.
The manufacturing section, notably the oleochemical sub-segment, struggled because of hostile circumstances in Europe and China.
KLK plans to restructure its operations in Europe to mitigate losses, anticipating continued weak demand in Europe however a barely higher Asian market restoration.
The corporate goals to leverage native information and international greatest practices to drive innovation and operational efficiencies.
Regardless of a major anticipated decline in its monetary efficiency for the fiscal yr 2023, KLK expects a greater fourth quarter consequence.
KLK’s inventory closed at RM22.40, marking a 0.44% lower, with a complete market capitalisation of RM24.21 billion. – TMR
