Kuala Lumpur Kepong's 2Q net profit up 32%, pays 20 sen dividend

• For the cumulative six months (1HFY2025), the group's net profit increased 8.9% to RM374.73 million from RM344.01 million in 1HFY2024, while revenue was up 10.7% to RM12.28 billion from RM11.09 billion.

KUALA LUMPUR (May 22): Plantation company Kuala Lumpur Kepong Bhd (KL:KLK) reported a 31.8% increase in net profit to RM154.27 million for its second financial quarter ended March 31, 2025 (2QFY2025) from RM117.07 million a year earlier, on improved plantation profit.

Earnings per share came in higher at 14.0 sen for 2QFY2025 compared with 10.8 sen for 2QFY2024.

Revenue for the quarter also rose 16.2% to RM6.34 billion from RM5.46 billion a year earlier.

The group declared an interim dividend of 20 sen per share for the financial year ending Sept 30, 2025 (FY2025), payable on July 29.

In a filing with Bursa Malaysia on Thursday, KLK said plantation profit improved to RM454.3 million in 2QFY2025 from RM357.7 million in 2QFY2024, largely due to higher average selling prices of crude palm oil (CPO) and palm kernel.

However, its manufacturing segment suffered a loss of RM38.3 million for the quarter against the profit of RM56.7 million achieved in 2QFY2024, dragged down by losses from the non-oleochemical division, refineries and kernel crushing operations.

KLK also saw its property segment’s profit fall 53.6% to RM3.5 million in 2QFY2025 from RM7.6 million a year earlier.

For the cumulative six months (1HFY2025), the group's net profit increased 8.9% to RM374.73 million from RM344.01 million in 1HFY2024, while revenue was up 10.7% to RM12.28 billion from RM11.09 billion.

In a separate statement, KLK executive chairman Tan Sri Lee Oi Hian said despite the volatile external environment, its plantation division has continued to deliver strong results.

"We anticipate production to improve in the second half (of 2025), though fluctuations in CPO prices and external demand remain key uncertainties. Our oleochemical sub-segment’s recovery remains encouraging, and we are closely managing challenges in the refining business.

"Moving forward, we remain watchful, focusing on operational efficiency, long-term value creation and sustainability,” he added.

As of September 2024, KLK has about 300,000ha of planted area. Its landbank is spread across Peninsular Malaysia, Sabah, Indonesia (Belitung Island, Sumatra, as well as Central and East Kalimantan) and Liberia.

KLK shares closed down four sen or 0.2% at RM19.62 on Thursday, giving it a market capitalisation of RM21.9 billion. The stock has fallen 9.5% year to date.

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