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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.

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