KUALA LUMPUR (July 16): Plantation group Kim Loong Resources Bhd’s net profit for the first quarter ended April 30, 2021 (1QFY22) rose 23.95% to RM28.38 million from RM22.9 million a year ago, as higher selling prices more than offset lower production in the period.
Revenue rose 55.17% to RM312.45 million, from RM201.36 million, the company’s bourse filing showed. Quarterly earnings per share improved to 3.04 sen apiece, from 2.45 sen.
In the period, the group noted that its fresh fruit bunch (FFB) and crude palm oil (CPO) production fell 21% and 4% respectively, while average selling prices for the two products rose 80% and 59% respectively.
Notably, the group’s palm oil milling operation fell 32% on-year, mainly due to lower-than-expected CPO extraction rate and crop supply.
“Competition for crop supply has led to a more aggressive pricing strategy, which had an impact on processing margin,” Kim Loong said.
On prospects, the group has taken physical possession of 2,722 acres of plantation under a previously announced acquisition that is expected to be completed in 3Q2021.
“Therefore, the management forecasts FFB production for the financial year ending Jan 31, 2022 could be slightly higher than the quantity achieved in financial year 2021, after taking into consideration the impact of its ongoing replanting programme and the seasonal factor on cropping trend,” it added.
Shares of Kim Loong Resources rose 1.41% or 2 sen to close at RM1.44 today, valuing it at RM1.35 billion.
