KUALA LUMPUR, Nov 23 — Batu Kawan Bhd posted a slightly higher net profit of RM1.17 billion for the financial year ended September 30, 2022 (FY2022) compared to RM1.15 billion in the previous corresponding year, due to higher contributions recorded by all segments.
Revenue also increased to RM28.22 billion versus RM20.72 billion a year earlier, it said in a filing with Bursa Malaysia today.
For the fourth quarter ended September 30, 2022 (Q4 2022), the group’s net profit eased to RM222.79 million from RM308.04 million previously, while revenue stood at RM7.22 billion against RM6.16 billion in the same quarter last year.
The group’s plantation segment profit for FY2022 surged by 56.9 per cent or RM2.18 billion with a higher revenue of RM4.21 billion from stronger selling prices and higher sales volumes of crude palm oil (CPO) and palm kernel (PK), coupled with higher profit contribution from KLK Sawit Nusantara Bhd and newly acquired subsidiary PT Pinang Witmas Sejati.
However, the increase in the plantation’s profit was offset by a fair value loss of RM17.75 million on the valuation of unharvested fresh fruit bunches and higher CPO production costs, said the group.
Its manufacturing segment reported a 25.4 per cent higher profit of RM1.28 billion on 34.5 per cent higher revenue at RM23.54 billion, attributable to higher contributions from the oleochemical division.
The industrial chemical division’s profit jumped more than two-fold to RM209.10 million from higher average selling prices of caustic soda, in line with global prices.
Meanwhile, the property development’s profit was 3.4 per cent higher at RM71.58 million with a flat revenue of RM195.20 million.
On prospect, it said that in view of softening CPO prices since June 2022 due to the heightened risk of global recession, the group’s plantation segment profit for FY2023 is expected to be affected by escalating costs in fuel, fertilisers and agrochemicals.
For the group’s manufacturing segment, the oleochemical division expects headwinds for FY2023 due to raw material price volatility, high energy costs and softening demand.
“The group industrial chemical division anticipates rising energy costs and lower production attributable to plant upgrading works for FY2023,” it said. — Bernama