KUALA LUMPUR, Nov 22 — Kuala Lumpur Kepong Bhd (KLK) reported a lower net profit of RM834.25 million for its financial year ended Sept 30, 2023 (FY2023) compared with RM2.16 billion in the same period a year ago.

In a filing with Bursa Malaysia, the plantation group said revenue fell to RM23.64 billion versus RM27.14 billion in FY2022.

For the fourth quarter ended Sept 30, 2023 (4Q FY2023), KLK’s net profit fell to RM116.30 million from the previous corresponding quarter’s RM462.13 million.

Revenue for 4Q FY2023 eased to RM5.77 billion compared with RM6.97 billion previously.

KLK said its plantation sector’s 4Q profit before tax slipped 18.7 per cent to RM417.5 million from RM513.6 million in the same quarter last year, largely caused by lower crude palm oil (CPO) sales volume and a decline in average CPO and palm kernel (PK) selling prices.

It said the group remained dedicated to enhancing estate operational efficiency to increase productivity, notwithstanding the adverse effects of the El Nino phenomenon.

KLK said the marginal improvement in yields in FY2023 was a good testament to the team’s dedication.

The group said that during FY2023, it managed to overcome the issue of a shortage of workers, which led to the need to train new and inexperienced workers.

Attention has also been placed on restoring agricultural conditions as well as efficiency in crop recovery and quality.

"Generally, the group is also focused on maintaining high replanting standards for better future yields.

"Overall, the group is cautiously optimistic about its financial results for FY2024, despite the high-interest environment, as well as geopolitical conflicts which could weigh heavily on the global economy,” it added. — Bernama