KLK posts higher net profit of RM304.1m

KUALA LUMPUR: Kuala Lumpur Kepong Bhd (KLK) recorded a net profit of RM304.1 million for its first quarter ended Dec 31, 2011 (1Q 2011), up from its net profit of RM241.8 million net profit posted a year ago.

Its revenue rose to RM2.42 billion in 1Q 2011 from RM1.74 billion a year ago.

Whilst the quarter's results was impacted by fair value losses of RM95.3 million on adoption of FRS 139, the increase in profit came from the plantations sector, said the company on Wednesday, Feb 23 in a Bursa Malaysia announcement.

Plantations profit climbed 34.2% to RM314.6 million underpinned by higher average commodity prices.

Comparing its quarterly results, the sector's profit had decreased 25.2% to RM19.5 million, mainly due to fair value losses of RM50.2 million on adoption of FRS 139.

The previous quarter's results was also aided by the write-back of RM76.0 million on the allowance for diminution in value of investment.

However, for 1Q 2011, the retailing sector recorded a profit of RM53.6 million, mainly due to seasonal factors, compared to the loss of RM9 million in 4Q 2010.

For the current financial year, the company expects higher contributions from the plantations sector partly based on prevailing strong commodity prices. Meanwhile, the oleochemical division is expected to generate satisfactory performance although the business remains competitive and challenging.