Friday, August 26, 2011

Kulim 2Q net profit surges nine-fold to RM146.29m

KUALA LUMPUR: KULIM (M) BHD [] net profit for the second quarter ended June 30, 2011 surged nine-fold to RM146.29 million from RM14.66 million a year earlier, driven by mainly by higher revenue and profits from its PLANTATION [] division.

In it said on Friday, Aug 26 that revenue for the period rose 32.4% to RM1.80 billion from RM1.36 billion, with higher contribution from all segments.

Earnings per share was 11.70 sen compared to 4.69 sen, while net assets per share was RM3.03.

For the six months ended June 30, Kulim's net profit surged to RM273.39 million from RM76.55 million in 2010, on the back of a 33.3% jump in revenue to RM3.46 billion from RM2.59 billion.

Reviewing its performance, Kulim said the oil palm sector recorded higher revenue and profits for the cumulative quarters due to better palm products prices and higher FFB production.

The higher revenue at the foods and restaurant group was due mainly to the better contributions from its KFC operations in Malaysia and its Singapore's Pizza Hut operations, it said.

On its prospects, Kulim said that although palm prices had fallen by almost 8%, the remaining quarters, are nonetheless, expected to perform well due to the forecasted improved FFB production during the period.

On its Papua New Guinea and Solomon Island operations, Kulim said NBPOL appeared to be increasing in production and higher prices of palm products indicate results for the remaining quarters of the current financial year to be better than the current quarter.

It said the foods and restaurants division was taking several initiatives to develop and introduce new products with value propositions in mind to drive transactions at the group's operating network.

Kulim said it would continue to implement its plan of increasing revenue and profitability by enhancing customer experience, increasing the restaurants network, expanding business activities, developing better cost efficiencies and improving productivity at all its restaurants, manufacturing and production facilities.

The shipping business had registered much improvement as all the vessels ordered have been progressively delivered to the oil majors on term charter which are currently operating smoothly, it said.

'Based on the above generally positive outlook, the board is confident that 2011 will be another good year for the group,' said Kulim.


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