Kuala Lumpur Kepong (KLK) Q3 2024 earnings summary

Executive summary

• Third quarter revenue rose 7.6% year-over-year to RM5.50 billion, with profit before tax surging to RM363.0 million from RM74.5 million in 3QFY2023.

• Year-to-date (YTD) revenue declined 7.1% to RM16.59 billion, while pre-tax profit remained flat at RM963.9 million compared to RM969.4 million last year.

• Plantation segment drove performance, offsetting weaker results in Manufacturing and Property Development.

Financial highlights

• Net profit for the quarter was RM269.9 million, up from RM107.6 million in 3QFY2023.

• YTD net profit attributable to equity holders was RM584.2 million, down 18.6% year-over-year.

• Basic EPS for the quarter was 21.9 sen (3QFY2023: 7.8 sen); YTD basic EPS was 53.8 sen (YTD 2023: 66.6 sen).

• Operating cash flow for the nine months was RM1.31 billion, down from RM1.99 billion last year.

• Net cash used in investing activities increased to RM2.19 billion from RM928.4 million.

Outlook and guidance

• Plantation segment expected to remain the main profit contributor, supported by cost optimisation and improved yields.

• Manufacturing segment faces challenges from overcapacity and high costs in Europe, but recovery is seen in the European oleochemical sub-segment.

• Investment in associate Synthomer plc continues to weigh on results due to ongoing business challenges.