Batu Kawan net profit eases to RM84.72mil in 2Q

KUALA LUMPUR: Batu Kawan Bhd posted a lower net profit of RM84.72 million in the second quarter ended March 31, 2024 (2Q 2024) from RM120.05 million in the same quarter last year.

Revenue also dipped to RM5.66 billion from RM6.31 billion previously, the group said in a filing with Bursa Malaysia today.

Its pre-tax profit for the current quarter was 20.6 per cent lower at RM271.37 million from RM341.95 million in 2Q 2023 on the back of a lower revenue of RM5.66 billion from RM6.31 billion in the same period.

The company’s manufacturing segment’s profit shrank by 64.3 per cent to RM78.35 million from RM219.59 million in 2Q 2023 due to lower revenue of RM4.58 billion from RM5.31 billion in 2Q 2023, owing to lower profit contributions from the oleochemical division.

“Notwithstanding higher caustic sales volume, the industrial chemical division’s profit was 6.3 per cent lower at RM33.00 million from RM35.10 million in the same period last year, mainly due to lower caustic selling prices,” it said.

The group’s property development segment’s profit was 58.8 per cent lower at RM7.77 million from RM18.86 million in 2Q 2023 mainly due to the recognition of development profits from phases with lower gross margin.

In addition, the plantation segment posted a 25.4 per cent higher profit at RM365.76 million in 2Q 2024 from RM291.68 million in 2Q 2023 mainly due to higher crude palm oil sales volume and palm kernel selling price realised.

Meanwhile, for the investment holdings/others segment, unrealised foreign currency exchange translation loss stood at RM22.23 million from a gain of RM31.61 million in 2Q 2023 on inter-company loans denominated in foreign currencies and a share of equity loss amounting to RM87.24 million from an overseas associate, Synthomer PLC.

“The loss reported by the British chemicals company was mainly due to its weak performance coupled with non-operating charges incurred on amortisation of acquired intangibles and restructuring costs,” said the group.

In a separate filing, Batu Kawan declared an interim single-tier dividend of 20 sen per share, to be paid on August 1, 2024. – BK