KUALA LUMPUR (June 27): Kim Loong Resources Bhd’s net profit for the first quarter ended April 30, 2024 (1Q FY2025) rose to RM49.51 million from RM31.51 million registered for the same period a year ago.

Revenue increased by 19% to RM388.38 million from RM326.68 million previously due to higher fresh fruit bunches (FFBs) and crude palm oil (CPO) production which rose by 6% and 13% respectively.

In a filing with Bursa Malaysia today, the company said plantation operations chalked up revenue of RM60.83 million versus RM56.33 million for the same period a year ago.

FFB production and average FFB selling price rose by 6% and 2% respectively.

Milling operations for the current quarter totalled RM380.44 million versus RM320 million a year ago.

“The profit from the milling operations jumped by 80% to RM38.73 million. The good performance was mainly due to higher CPO production, better processing margin and strategic FFB pricing,” it said.

On prospects, the management aims to achieve at least 5% higher FFB production for FY2025 after considering a better age profile of young palms’ productive area and its ongoing replanting programme.

“The group targets to replant about 1,000 hectares in FY2025,” it said.

As for palm oil milling operations, the management targets to achieve a total processing throughput of 1.6 million metric tonnes (MT) of FFB for the current financial year.

The management expects the average CPO price for FY2025 to stay around RM4,000 per MT although CPO prices can be volatile and unpredictable.

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