KUALA LUMPUR (Sept 29):  Kim Loong Resources Bhd’s (KL:KMLOONG) second-quarter net profit dropped 5%, weighed down by lower fresh fruit bunch (FFB) production and reduced crude palm oil (CPO) sales volume.

The weaker earnings came despite an increase in the average FFB selling price and a higher average CPO selling price, the plantation group said in a bourse filing.

Net profit for the three months ended July 31, 2026 (2QFY2027) declined to RM44.94 million from RM47.31 million a year earlier. Earnings per share dropped to 4.56 sen from 4.82 sen.

Revenue for the quarter eased 3.1% year-on-year to RM422.76 million from RM436.19 million.

During the quarter, the group’s FFB price increased 14% to RM903 per tonne from RM794 in 2QFY2026, while the average CPO selling price rose 12% to RM4,508 per tonne from RM4,012 per tonne.

In terms of production, FFB output fell 17% to 72,438 tonnes from 86,942 tonnes in 2QFY2026, while CPO production declined by 11% to 78,819 tonnes from 88,256 tonnes.

The group declared an interim dividend of five sen per share, payable on Nov 12.

For the six-month period, the group’s net profit grew 12.2% to RM100.12 million from RM89.23 million a year earlier as revenue rose 2.9% to RM 872.42 million from RM847.91 million.

The group has two revenue segments, with milling operations contributing 87.5% out of total revenue and the plantation segment making up the remaining 12.5%.

For FY2027, Kim Loong has revised its FFB production outlook to a 6% decline from FY2026, citing weaker‑than‑expected output in the first half. Recovery is expected to be supported by younger palms and ongoing replanting, with about 700 hectares scheduled this year.

The group’s milling operations are projected to process 1.6 million tonnes of FFB, while the average CPO price is forecast at RM4,500 to RM4,800 per tonne.

With CPO prices anticipated to strengthen in the second half, Kim Loong expects the impact of lower FFB production to be partly cushioned by firmer CPO prices.

“We expect the group to perform satisfactorily for the financial year 2027,” it added.

Kim Loong shares ended unchanged at RM2.73 on Tuesday, giving the group a market capitalisation of RM2.69 billion. The counter has risen 17.2% over the past one year.