KUALA LUMPUR, Nov 23 — Kuala Lumpur Kepong Bhd’s (KLK) net profit dropped to RM2.17 billion in the financial year ended September 30, 2022 (FY2022) from RM2.26 billion posted in FY2021 due to investment losses.

Revenue, however, jumped to RM27.15 billion from RM19.92 billion previously.

KLK said its plantation, manufacturing, and property development segments showed higher contributions in FY2022.

"The plantation segment reported a sharp rise in profit to RM2.139 billion, driven by stronger crude palm oil (CPO) and palm kernel (PK) selling prices as well as higher CPO and PK sales volume,” it said in a stock filing exchange.

There was also a profit contribution from the newly acquired subsidiary PT Pinang Witmas Sejati and a higher income from KLK Sawit Nusantara Bhd (KSN).

KLK’s manufacturing profit surged 16.8 per cent to RM1.071 billion, underpinned by higher revenue of RM22.605 billion and improved contribution from the oleochemicals division. Its property development profit climbed higher to RM70.9 million.

However, the planter’s investment holdings segment suffered a loss of RM12.4 million, mainly due to a significantly lower share of equity profit from an overseas associate Synthomer plc amounting to RM114.7 million and higher interest expense on increased borrowings.

For the fourth quarter, its net profit dropped to RM462.13 million from RM625.8 million in the same period a year ago.

The plantation group expects a challenging FY2023.

"The plantation segment profit in FY2023 will likely be affected by the normalisation of CPO prices while costs are escalating under inflationary pressures on fuel, fertilisers, and agrochemicals.

"The manufacturing segment sees headwinds ahead in FY2023 with volatility in raw material prices, high energy costs, and softening demand driven by the persistent fear of a global recession, coupled with sluggish economic growth in China,” it said. — Bernama