Kuala Lumpur Kepong (KLK) Q4 2024 earnings summary

Executive summary

• Pre-tax profit for FY2024 rose 2.7% year-over-year to RM1.18 billion, despite a 5.8% decline in revenue to RM22.27 billion.

• Net profit attributable to equity holders dropped 29.2% to RM591.0 million, mainly due to exceptional non-cash losses.

• Exceptional losses included RM180.0 million impairment on Synthomer PLC and RM50.8 million inventory write-down.

Financial highlights

• Revenue: RM22.27 billion (down 5.8% year-over-year).

• Profit before tax: RM1.18 billion (up 2.7% year-over-year).

• Net profit: RM738.1 million (down 25.5% year-over-year).

• Earnings per share: 54.3 sen (down from 77.4 sen year-over-year).

• Net assets per share: RM12.50 (down from RM13.28 year-over-year).

Outlook and guidance

• Management expects FY2025 to be promising, with strong palm oil prices and continued improvements in the Oleochemical sub-segment.

• Plantation segment anticipated to remain robust, supported by high CPO prices and cost optimisation.

• Manufacturing recovery led by Malaysian operations, with European operations turning around.

• Synthomer PLC expected to improve with new leadership and strategic focus.