Kim Loong Resources Bhd reported a 6% year-on-year increase in revenue to RM411.7 million for the first quarter ended 30 April 2025 (1QFY26), supported by stronger fresh fruit bunch (FFB) production and improved selling prices.
However, net profit for the quarter declined 15.3% to RM41.9 million, impacted by a reduced processing margin from milling operations. The company noted that despite this decline, the higher selling price of FFB and improved production volumes helped underpin revenue growth.
On a quarter-on-quarter basis, the group’s net profit nearly doubled from RM22.8 million recorded in the fourth quarter ended 31 January 2025, even as revenue fell from RM443.3 million. The improvement in earnings was attributed to higher FFB output during the quarter.
Looking ahead, Kim Loong Resources is targeting a 5% to 10% increase in FFB production for the financial year ending 31 January 2026. The company expects this growth to be driven by the favourable age profile of its young, productive palms and the continued progress of its replanting programme.
-The Star
