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KUALA LUMPUR (Feb 26): Kuala Lumpur Kepong Bhd (KL:KLK) saw its net profit for the first quarter rise 73.5% from a year earlier, despite lower crude palm oil (CPO) prices, on better palm product sales volumes coupled with lower production costs.
Net profit for the three months ended Dec 31, 2025 (1QFY2026) surged to RM382.41 million from RM220.46 million a year earlier, as revenue rose 6.8% to RM6.35 billion from RM5.95 million previously, according to the plantation outfit’s bourse filing on Wednesday.
No dividend was recommended for the quarter.
The manufacturing segment saw a turnaround, with a profit of RM42 million versus a loss of RM53.4 million in 1QFY2025, on higher profit contribution from the oleochemical division, lower loss reported by the non-oleochemical division and turnaround in profitability from refineries.
Looking ahead, KLK said CPO prices are expected to trade within the RM3,900 to RM4,300 per metric ton range for the January-March 2026 period, and near-term price upside remains limited.
On the downstream side, the group noted that while some improvement in demand has been observed, margins still remain tight.
“Following the completion of major capacity expansion projects, the group is now focused on driving earnings performance.
“Backed by resilient plantation operations and improving downstream contributions, the group remains confident that it is on track to deliver a better operational performance in 2026,” it said.
Batu Kawan 1Q profit up 43%
Batu Kawan Bhd (KL:BKAWAN), the 47.9%-owned parent of KLK, saw a similar upswing in earnings.
Net profit for 1QFY2026 grew 42.9% to RM182.36 million from RM127.6 million a year earlier, while revenue rose 6.3% to RM6.51 billion from RM6.12 billion previously.
No dividend was recommended for the quarter.
Shares in KLK ended 42 sen or 2.14% lower at RM19.18, valuing the group at RM21.41 billion.
Batu Kawan shares closed 10 sen or 0.51% lower at RM19.60, valuing the group at RM7.83 billion.
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