KUALA LUMPUR: Kim Loong Resources Bhd
, which posted a net profit of RM36.74mil in the third quarter ended Oct 31 (3Q), expects to perform well and achieve a record high revenue and profit for the financial year ending January 31, 2023 (FY23).
The group forecasts the fresh fruit bunch (FFB) production for FY23 could be 7% higher than the quantity achieved in FY22.
“As for palm oilmilling operations, the management expects the total processing quantitycould surpass 1.5 million tonne of FFB for the current financial year.
“Our biogas plant at Keningau has commenced supply of power to grid in December 2022and we expect our biogas plant at Telupid could commence operationsinthe first half of FY24,” Kim Loong said in the notes accompanying its financial results.
It noted that the movement of crude palm oil (CPO) price had become highly unpredictable, hence the group would continue to monitor the impact of volatile pricing on its performance.
“Although the current high production season which might cause pressure CPO price, the management expects the average CPO price for the remaining period of FY23 could remain around RM4,000 per tonne and is of the view that the group could still benefit from the current level of CPO price especially the plantation operations,” Kim Loong said, adding that it also faced challenges such as significant surge in cost of fertiliser and higher labour costs.
“Based on the above, we expect the group to perform well and could achieve arecord high revenue and profitfor the financial year 2023,” it said.
In 3Q, Kim Loong’s revenue fell 18.3% to RM402.4mil against RM492.8mil achieved in the same quarter last year. Its earnings per share stood at 3.80 sen against 4.30 sen a year prior.
In the first nine months, Kim Loong posted a net profit of RM125.64mil, up 19% from RM105.6mil on a 22.4% growth in revenue to RM1.48bil from RM1.2bil last year.
Kim Long has declared a special single tier dividend of five sen per share in respect of FY23 with entitlement date on Jan 20, 2023, and payable on Feb 16, 2023.
