KUALA LUMPUR (June 29): Oil palm planter Kim Loong Resources Bhd’s (KL:KMLOONG) first quarter net profit increased 31.63% to RM55.18 million from RM41.92 million a year ago, driven by stronger processing margins from its milling operations.

Revenue for the quarter ended April 30, 2026 (1QFY2027) increased by 9.22% to RM449.66 million from RM411.72 million a year before. The milling operations contributed 88.6% of total revenue while the plantation segment contributed 11.4% to total revenue.

Milling operations reported higher revenue during the quarter, at RM441.5 million, driven by a 19% rise in crude palm oil (CPO) sales volume, despite a 6% decline in average CPO selling price, according to its bourse filing on Monday.

The average CPO selling price for the quarter amounted to RM4,355 per tonne compared to RM4,622 per tonne a year ago.

Meanwhile, revenue from the plantation segment declined to RM56.8 million during the quarter from RM72.19 million previously, as fresh fruit bunch (FFB) production was 19% lower during the quarter. Most of the FFB produce was supplied to mills within the group.

No dividend was declared for the quarter under review.

Kim Loong is maintaining its target of 5% growth in FFB production for FY2027, after taking into account the improved age profile of young productive palms and its ongoing replanting programme. It plans to replant 700 hectares in 2027.

Milling operations are expected to achieve a throughput of 1.6 million tonnes of FFB in FY2027, with management projecting average CPO price to stay in the range of RM4,000-RM4,500 per tonne.

As at market close on Monday, Kim Loong shares were down six sen or 2.26% at RM2.60, valuing the company at RM2.56 billion.