KUALA LUMPUR, Nov 19 — Batu Kawan Bhd’s net profit for the financial year ended September 30, 2019 fell to RM363.49 million from RM365.68 million a year ago.
Revenue declined 15.3 per cent to RM16.05 billion from RM18.95 billion previously, due to weaker performance from the plantation, manufacturing and industrial chemical division, it said in a filing with Bursa Malaysia today.
The group said the plantation segment posted a 19.3 per cent lower revenue of RM6.39 million impacted by weaker crude palm oil (CPO) and palm kernel (PK) prices, while manufacturing reported a 13.2 per cent lower revenue of RM9.19 million.
Meanwhile, the industrial chemical division posted a 27.6 per cent lower profit of RM101.70 million from lower selling prices and higher energy costs, it said.
On prospects, the group expects its plantation profit to improve for financial year 2020 with CPO and PK prices recovering from their low levels.
“The performance of the group’s oleochemical division should be sustained with some additional capacities coming on stream, while the industrial chemical segment, profits from both chlor-alkali and sulphuric acid businesses are projected to be satisfactory.
“Overall, the group expects a higher profit for financial year 2020,” it said. — Bernama
