KUALA LUMPUR (March 26): Johor-based oil palm planter and crude palm oil (CPO) miller Kim Loong Resources Bhd (KL:KMLOONG) reported an 8.49% drop in net profit for its fourth quarter compared to the previous year, as lower fresh fruit bunches (FFB) production and increased operational costs offset the higher revenue it netted for the quarter amid higher CPO selling prices.

Net profit for the fourth quarter ended Jan 31, 2025 (4QFY2025) was RM22.8 million, down from RM24.91 million in the same quarter of the preceding year, according to its Wednesday bourse filing. 

Quarterly revenue rose 21.4% to RM443.32 million from RM365.16 million, as the average selling price of CPO jumped 33% year-on-year to RM4,944 per tonne.

The group declared a second interim dividend of five sen per share, taking the total dividend for FY2025 to 15 sen per share, up from 13 sen in FY2024. The dividend will be paid on May 15, with April 24 set as the dividend ex-date.

For the full FY2025, Kim Loong’s net profit rose 9.5% to RM161.78 million from RM147.75 million in FY2024, as revenue grew 10.3% to RM1.68 billion from RM1.53 billion, primarily on higher CPO and FFB prices.

Kim Loong anticipates FFB production to rise by about 5% to 10% in FY2026, supported by an improved palm age profile and ongoing replanting efforts.

As for palm oil milling operations, the group expects to process 1.6 million tonnes of FFB this year. It also forecasts that average CPO prices will remain within RM4,000 to RM4,500 per tonne in the near term. “Based on the above, we expect the group to perform satisfactorily for the financial year 2026,” Kim Loong stated.

Kim Loong’s shares closed unchanged at RM2.31 on Wednesday, resulting in a market capitalisation of RM2.26 billion.