KUALA LUMPUR: Kuala Lumpur Kepong Bhd’s (KLK) net profit surged almost 200% to RM625.80mil for its fourth quarter of financial year ended Sept 30, 2021 (Q4’FY21) from RM208.82mil in the previous corresponding period, driven mainly by a three-fold increase in profit in the group’s plantation division.

       Its revenue in Q4’FY21 grew to RM5.93bil from RM4bil a year earlier.

       In a filing with Bursa Malaysia yesterday, KLK said profits by its plantation division increased to RM585.6mil during the quarter versus RM192.4mil in the previous corresponding period, due to improvement in crude palm oil (CPO) and palm kernel selling prices.

       Additionally, KLK said the improved profit at its plantation division was also due to contributions from its newly acquired subsidiary, IJM Plantations Bhd, as well as better profit gains from processing and trading operations.

       Profit for KLK’s manufacturing division rose 21.3% to RM144.3mil in Q4’FY21, on the back of a 35.4% increase in revenue to RM2.99bil.

       However, it was partially offset by an impairment of RM29.1mil on an underperforming specialised oleochemical plant, as well as lower unrealised gain of RM4.2mil from fair value changes on outstanding derivative contracts.

       “The improvement in profit was contributed by better performance from the China and Europe operations, while profit of the Malaysia operations was lower.

       “The oleochemical division’s profit was 21.6% higher at RM144.4mil, whilst other manufacturing units posted a loss of RM118,000,” said KLK.

       The group added that its property segment’s profit fell 50.7% to RM14.6mil, with lower revenue of RM66.6mil in Q4’FY21.

       Additionally, KLK said its Q4’FY21 profits were also spurred by a surplus of RM4.3mil, on sales of land and government acquisitions.

       For FY21, KLK’s net profit surged to RM2.26bil from RM772.60mil in FY20, while revenue grew to RM19.92bil from RM15.60bil.

       Commenting on its prospects, KLK said the performance of its plantation segment for 2022 is expected to be better on the back of strong prevailing CPO prices and profit contribution from the newly acquired plantation subsidiaries.“Despite challenges from volatile raw material price movements and logistic issues caused by the pandemic, the oleochemical division expects to maintain its performance in FY22.

       “Overall, the group is expected to sustain its strong performance going into FY22,” it said.