Kuala Lumpur Kepong (KLK) Q3 2026 earnings summary

Executive summary

• Reported a net loss attributable to equity holders of RM668.0 million for the nine months ended 30 June 2026, mainly due to a non-cash impairment loss of RM1.6 billion on an investment in Synthomer plc.

• Excluding impairment and share of equity loss in Synthomer, PATAMI would have been RM1.1 billion, supported by improved Plantation and Manufacturing segments.

• Revenue increased 6.6% year-over-year to RM19.95 billion for the nine months, with higher contributions from core segments.

Financial highlights

• Revenue for the quarter rose 9.7% year-over-year to RM7.05 billion; nine-month revenue up 6.6% to RM19.95 billion.

• Operating profit for the quarter increased 17.6% year-over-year to RM765.3 million; nine-month operating profit up 22.3% to RM2.0 billion.

• Loss before tax for the quarter was RM1.13 billion due to a RM1.62 billion impairment loss; excluding this, pre-tax profit was RM491.8 million.

• Basic loss per share for the quarter was 120.7 sen, compared to earnings of 31.1 sen in the prior year.

• Net assets per share stood at RM11.11 as of 30 June 2026.

Outlook and guidance

• Plantation segment expected to continue strong performance, supported by healthy production and favorable palm product prices, though operating costs remain elevated.

• Manufacturing segment outlook is satisfactory, with Oleochemical division benefiting from global supply disruptions, but refinery and kernel crushing operations face margin pressure.

• Group remains optimistic of delivering strong operational performance for the financial year.