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Kim Loong Resources Bhd has revised downward its full-year production target for fresh fruit bunches (FFB) of oil palm by six per cent to 310,000 tonnes for the financial year ending 31 January 2027 (FY27).
The Malaysian palm oil group attributed the downgrade to lower-than-expected FFB output during the first half of the year ended 31 July, alongside the improved age profile of younger productive palms and its ongoing replanting programme. In a filing with Bursa Malaysia accompanying its second-quarter results, the company said it plans to replant approximately 700 hectares during FY27.
The group posted a five per cent decline in net profit for the second quarter, at RM44.94 million compared with RM47.30 million in the corresponding quarter of the previous year. Revenue slipped three per cent to RM422.76 million, weighed down by a 17 per cent drop in FFB production to 72,438 tonnes, which translated into a 15 per cent lower yield per hectare of 5.23 tonnes. The impact was partially cushioned by a 14 per cent increase in average FFB price during the quarter.
Despite the softer Q2 performance, Kim Loong's first-half net profit rose 12 per cent year-on-year to RM100.12 million, supported by stronger first-quarter results. The board has declared an interim single-tier dividend of five sen per share for FY27.
Looking ahead, the group expects the lower FFB target to be partly offset by firmer crude palm oil (CPO) prices, forecasting average CPO prices in a range of RM4,500 to RM4,800 per tonne for FY27. It also expects to maintain an optimum processing throughput of 1.6 million tonnes across its palm oil milling operations.
Source: KLSE Screener