This article first appeared in The Edge Financial Daily on August 16, 2017 - August 22, 2017

KUALA LUMPUR: Batu Kawan Bhd’s net profit dropped 46% to RM80.78 million for the third quarter ended June 30, 2017 (3QFY17), from RM148.47 million in the corresponding period, mainly due to a substantially lower profit in its manufacturing segment.

Though its plantation segment recorded an 11% rise in profit to RM235.03 million on higher crude palm oil (CPO) and palm kernel selling prices, besides higher fresh fruit bunch production, this was not enough to offset the declines in both its manufacturing and property divisions.

Its manufacturing profit fell 86% year-on-year to RM19.21 million from RM140.59 million though revenue rose 22% to RM2.51 billion, as its oleochemical division reported a loss due to higher raw material cost and a RM60.33 million stock write-down, its Bursa Malaysia filing yesterday showed.

Its property development segment’s profit also halved to RM2.46 million as top line shrank 46% to RM14.01 million.

The group’s 3QFY17 revenue, however, rose 24% to RM5.01 billion from RM4.04 billion a year ago, due to higher contributions from both its plantation and manufacturing segments.

For its cumulative nine months ended June 30, 2017, Batu Kawan’s net profit declined 30% to RM441.64 million from RM630.43 million in the previous year, though revenue rose 32% to RM16.25 billion from RM12.31 billion.