KL Kepong 3Q net profit falls 22.4% to RM190m

Written by Joseph Chin
Wednesday, 26 August 2009 18:31

KUALA LUMPUR: KUALA LUMPUR KEPONG BHD [registerQuotes("KLK", "KLK_span");
] (KLK) saw its net profit fall 22.4% to RM190.24 million for the third quarter ended June 30, 2009 from a year ago, impacted by the decline in crude palm oil (CPO) prices.

KLK said on Aug 26 revenue fell to RM1.537 billion from RM2.029 billion while earnings per share were 17.86 sen versus 23.04 sen. In the 3Q, profit before taxation fell 34.3% to RM239.3 million from a year ago.

PLANTATION [registerQuotes("PLANTATION", "PLANTATION_span");
]s profit fell 46.8% to RM184.3 million mainly impacted by lower average CPO price (ex-mill) of RM2,330 tonnes (2008 : RM3,124 tonnes). It said the manufacturing division of its oleochemical operations posted a lower profit of RM18.0 million (2008 : profit RM58.8 million).

"Davos Life Science Pte Ltd (nutraceutical plant in Singapore) had recognised an impairment of assets provision of RM25.3 million (2008 : RM41.2 million). "Retailing sector suffered a higher loss which reflected the poor consumer market sentiments especially in the US," it said.

KLK added the corresponding quarter's results was aided by the surplus of RM86.5 million arising from the disposal of 60% stake in a cocoa products manufacturing subsidiary.However, the market value of its overseas quoted investment, Yule Catto & Co plc (Yule Catto), had resulted in the write-back of RM94.4 million on the allowance for diminution in value of investment.