KUALA LUMPUR, Nov 23 — Batu Kawan Bhd’s net profit soared by 175 per cent to RM1.15 billion in the financial year 2021 ended September 30, 2021 (FY2021) from RM417.28 million amid steady performances recorded by all segments.
Revenue jumped 29 per cent to RM20.72 billion from RM16.08 billion, it said in a filing to Bursa Malaysia.
The plantation’s profit jumped two-fold to RM1.62 billion with 24.3 per cent higher revenue of RM8.81 billion from stronger crude palm oil (CPO) and palm kernel (PK) selling prices coupled with profit contribution from newly acquired IJM Plantations Bhd, and higher profits from processing and trading operations.
However, the increase in the plantation’s profit was offset by a drop in CPO and PK sales volumes and an unrealised loss of RM74.56 million arising from fair value changes on outstanding derivative contracts.
The manufacturing reported a 70.3 per cent higher profit of RM792.38 million on 33.5 per cent higher revenue at RM11.45 billion.
The oleochemical division saw a 72.6 per cent higher profit of RM680.64 million despite an impairment loss of RM29.13 million on an under-performing specialised oleochemical plant.
It said excluding the RM15.53 million gain on disposal of equity investment, the industrial chemical division recorded a 30.3 per cent higher profit of RM82.97 million due to higher average selling prices of caustic soda and chlorine.
Meanwhile, property development posted a 25.8 per cent higher profit at RM69.24 million on the back 25.9 per cent higher revenue of RM195.07 million.
As for the fourth quarter, net profit surged to RM308.04 million from RM85.17 million, while revenue was better at RM6.16 billion from RM4.12 billion previously.
In view of higher CPO prices, the group’s plantation segment is expected to continue its strong performance for FY2022.
Its oleochemical division is projected to maintain its performance in FY2022 despite ongoing challenges from volatile raw material price movements and logistic issues caused by the Covid-19 pandemic.
As for the group’s Industrial Chemical division, given the strong prevailing caustic soda prices, better performance is likely next year. — Bernama