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- The upswing similarly boosted Batu Kawan Bhd (KL:BKAWAN), KLK’s 47.9%-owned parent, which returned to the black in 4QFY2025 from net loss a year earlier.
KUALA LUMPUR (Nov 26): Kuala Lumpur Kepong Bhd (KL:KLK) saw its fourth-quarter net profit soar 14-fold, boosted by stronger plantation and property results, despite notching RM123.7 million in non-cash losses from its UK chemicals investment, Synthomer plc, including a RM60 million impairment.
Synthomer’s loss was mainly due to non-operating costs from amortising acquired intangibles, restructuring and closing sites.
Plantation profits rose 18.8% to RM625.9 million on better crude palm oil (CPO) and palm kernel selling prices, more CPO sales and higher fair value gain. Earnings more than doubled at its property division to RM21.7 million.
For the fourth quarter ended Sept 30, 2025 (4QFY2025), KLK’s net profit surged to RM95.96 million from RM6.77 million a year earlier, while revenue rose 11.01% to RM6.3 billion from RM5.68 billion.
KLK declared a final dividend of 40 sen per share, payable on Feb 10, 2026. This brings the full-year payout to 60 sen per share.
KLK said it is focusing on improving plantation yields, operational efficiency and supply-chain traceability to meet regulatory standards.
Its manufacturing division faces challenges from weak oleochemical margins, European market conditions and start-up costs for new facilities, while midstream refining margins remain tight due to high feedstock costs and competition.
To address these challenges, KLK is shifting toward higher value-added downstream products, including a joint venture with AAK AB to build a specialty oils and fats refinery in Johor.
The group recorded RM127.5 million in losses and a RM60 million impairment from its investment in Synthomer for FY2025 due to weak chemical demand. Some recovery was seen in Synthomer’s specialised products and the group will keep monitoring the investment, it said.
With major projects completed and capital spending normalised, KLK aims to optimise returns from recent investments. Backed by strong plantation cash flows and a solid balance sheet, the group is confident of a better performance in FY2026.
For FY2025, KLK’s net profit expanded 38.3% to RM817.28 million from RM590.96 million, while revenue climbed 12.33% to RM25.02 billion from RM22.27 billion.
Batu Kawan returns to the black in 4QFY2025
The upswing similarly boosted Batu Kawan Bhd (KL:BKAWAN), KLK’s 47.9%-owned parent, which returned to the black in 4QFY2025 from net loss a year earlier.
Batu Kawan posted a net profit of RM69.34 million, reversing a net loss of RM19.76 million in the same period last year, as revenue increased 10.18% to RM6.48 billion from RM5.88 billion.
Batu Kawan proposed a final dividend of 50 sen per share, to be paid on Feb 12, 2026. This brings total payout for FY2025 to 70 sen per share.
Batu Kawan’s FY2025 net profit rose 56.51% year-on-year to RM467.75 million, with revenue up 20.23% year-on-year to RM27.72 billion.
Shares of KLK closed 44 sen or 2.09% lower at RM20.60 on Wednesday, valuing the group at RM22.99 billion.
Batu Kawan was unchanged at RM19.20, giving it a market capitalisation of RM7.67 billion.
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