KLK FY2024 NET PROFIT DECLINES 29.2 PCT TO RM590.96 MLN

KUALA LUMPUR, Nov 26 (Bernama) -- Kuala Lumpur Kepong Bhd’s (KLK) net profit for the financial year ended Sept 30, 2024 (FY2024), declined 29.2 per cent to RM590.961million from RM834.26 million in the preceding year due to tax losses not recognised and exceptional losses.

Revenue fell to RM22.27 billion from RM23.65 billion previously, the plantation group said in a filing with Bursa Malaysia today.

On the exceptional losses of RM366.5 million, it said this comprised losses of RM315.7 million from the group’s investment in specialty chemical company Synthomer PLC, including an impairment loss of RM180 million and share of equity loss of RM135.7 million, as well as an inventory write-down of RM50.8 million arising from parquet flooring manufacturing unit KLK Hardwood Flooring Sdn Bhd.

“The impairment and inventory write-down are non-cash and non-recurring items,” it said.

In a statement, KLK executive chairman Tan Sri Lee Oi Hian said while non-recurring losses in certain units have impacted overall results, the group has proactively addressed these through strategic measures designed to strengthen our foundation.

“We identified key issues and implemented effective mitigation strategies, which have started to yield positive results. Our plantation segment has delivered one of its strongest performances in the past five years and we are encouraged by the recovery in our oleochemical sub-segment.

“Looking ahead, we remain committed to operational excellence, guided by integrity, strong governance and sustainability. We will continue to optimise costs, enhance the best practices that underpin our success, and address areas where challenges remain,” he said.

For the fourth quarter ended Sept 30, 2024, KLK recorded a lower net profit of RM6.77 million compared to RM116.31 million in the same quarter last year, while revenue fell to RM5.68 billion from RM5.78 billion previously.

-- BERNAMA