Batu Kawan 3Q net profit jump 82% to RM387m on higher revenue

KUALA LUMPUR (Aug 18): Batu Kawan Bhd’s net profit for the third quarter ended June 30, 2021 (3QFY21) soared 81.73% to RM386.46 million, from RM212.65 million a year earlier, on higher revenue contributed by its business segments.

Earnings per share climbed to 97.51 sen from 53.74 sen, the group’s stock exchange filing showed.

Quarterly revenue jumped 41.24% to RM5.4 billion, from RM3.82 billion in 3QFY20.

Batu Kawan’s plantation profit was 90.2% higher at RM438.08 million, from RM230.34 million previously. Revenue rose 45.1% to RM2.3 billion, from RM1.58 billion, on higher crude palm oil and palm kernel selling prices, despite lower sales volume.

“The higher profit was further offsetted by higher cost of production arising from a 2.1% drop in FFB [fresh fruit bunch] production to 1.02 million tonnes (3QFY20: 1.04 million tonnes) and lower contribution from the processing and trading operations,” it said.

The group said its manufacturing profit doubled to RM237.55 million, from RM119.14 million a year ago, while revenue increased to RM3.03 billion from RM2.17 billion.

The oleochemical division's profit jumped two folds to RM207.82 million (3QFY20: RM101.93 million), mainly due to a better performance from Malaysia, China and Europe operations.

The industrial chemical division, meanwhile, recorded a 127.6% higher profit at RM26.40 million (3QFY20: RM11.60 million) from higher sales volume and selling price, coupled with a RM4.70 million profit contributed by newly-acquired subsidiaries.

Batu Kawan’s property development profit improved to RM15.5 million, from RM7.63 million in 3QFY20, as revenue climbed to RM33.36 million from RM15.13 million.

Meanwhile, investment holding/others recorded a profit of RM287.95 million, a 67.17% jump from RM172.25 million in the previous year, due to non-operational items.

For the nine months to June 30, Batu Kawan’s net profit leapt 153% to RM838.9 million, from RM332.1 million in the previous corresponding period, while revenue increased 21.73% to RM14.56 billion from RM11.96 billion.

Shares of Batu Kawan ended 24 sen or 1.21% higher at RM20.10 today, giving the group a market capitalisation of RM8.03 billion.

Get the latest news @

Subscribe to our Telegram channel for the latest stories and updates 

Click here for more property stories

Like our content? Check out Narratives – where we curate stories based on topics to keep you well and broadly informed about Malaysian real estate.

Looking for property? Check out Location Scan, where we summarize all available options and facts you need in a few clicks. We have updated the tool to include MRT3 stations too.

Curious how much you can borrow? Use LoanCheck to get your maximum loan eligibility from various banks, or LoanReport to get a FREE CTOS/CCRIS credit report.
  1. Coastal living at Prince Bay Taiziwan, China
  2. Evergrande to raise US$5b from stake selling its property unit
  3. Berjaya Corp's 4Q loss narrows on-year as revenue more than doubles, bolstered by gaming, F&B ops