KUALA LUMPUR (Bernama) — Kim Loong Resources Bhd
‘s net profit rose to RM28.38 million in the first quarter of the financial year (FY) 2022 ended April 30, 2021 (Q1 2022), from RM22.90 million posted in the same quarter last year.
Revenue also surged 55% to RM312.45 million from RM201.36 million for the corresponding period last year, the oil palm plantation group said in a filing with Bursa Malaysia.
The group said the impressive performance for the current FY was mainly due to higher average selling prices of fresh fruit bunches (FFB) and crude palm oil (CPO) by 80% and 59%, respectively.
On the other hand, it said FFB and CPO production were lower by 21% and 4%, respectively.
“The 1,101.6 hectares (ha) of oil palm plantation lands in Sabah, which the group took possession of in February 2021, contributed about 4,000 metric tonnes (MT) of FFB.
“Plantation operations did not face difficulties in selling its FFB production as most of the produce was supplied to mills within the group,” it said.
Meanwhile, the group said its milling operations recorded a lower profit of RM13.92 million, representing a drop of 32% from RM20.54 million previously, due to the lower-than-expected CPO extraction rate and crop supply.
“Competition for crop supply led to an aggressive pricing strategy which caused an impact on the processing margin.
“However, the market condition and demand for the group’s milling products have been good for the current quarter and year-to-date,” it added.
The group forecast that FFB production for the FY ending Jan 31, 2022, could be slightly higher than the quantity achieved in FY 2021, after taking into consideration the impact of its ongoing replanting programme and seasonal factor on cropping trend.
“It is expected that an additional 30,000 MT of FFB could be produced from the 1,101.6ha plantation lands, which acquisitions are expected to be completed in the third quarter of 2021,” it added.
