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KL Kepong Q3 profit leaps 78pc

Posted by Flora Sawita

KUALA LUMPUR: Kuala Lumpur Kepong Bhd's (KLK) third quarter profit ended June 2011 leapt 78 per cent to RM432.76 million from a year ago, thanks to stronger contribution from its oil palm division, oleochemical operations and sale of its cocoa business.

Group revenue rose to RM2.95 billion from RM1.83 billion before.

In a filing to the stock exchange yesterday, KLK said its plantations profit for the quarter climbed 73 per cent to RM454.4 million, underpinned by higher average palm oil price of RM3,085 per tonne, palm kernel oil of RM2,375. Rubber was sold at RM16.15 per kg.

The group's manufacturing profits jumped 68 per cent to RM95.5 million, underpinned by buoyant fatty alcohol performance of the oleochemical division.




For the quarter, KLK sold off its 50 per cent stake in Esterol Sdn Bhd for RM234.7 million. The Klang-based food emulsifier manufacturer was a joint venture with Kerry Group BV, Netherlands.

KLK exited the cocoa business and gained RM43.4 million from the sale of its 40 per cent remaining stake in Barry Callebaut Malaysia Sdn Bhd.

The effective tax rates for the current quarter are lower than the statutory tax rate. This is mainly due to non-taxable income received and the utilisation of previously unrecognised tax losses and capital allowances by select subsidiaries.

KLK is hopeful that the current financial year ending September 30 2011 will be favourable on higher palm oil output and stronger earnings from its oleochemical division.

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