KUALA LUMPUR: Batu Kawan Bhd posted a higher net profit of RM182.36 million in the first quarter ended Dec 31, 2025 (1Q 2026) from RM127.60 million in 1Q 2025.
In a Bursa Malaysia filing on Wednesday, it said revenue also increased to RM6.51 billion from RM6.12 billion previously, mainly due to improved plantation and manufacturing segments.
“The plantation’s profit improved 9.5 per cent to RM640.60 million, mainly due to higher crude palm oil (CPO) and palm kernel (PK) sales volume, coupled with higher PK selling price, a drop in CPO production cost, and net gain of RM20.92 million from fair value changes on outstanding derivative contracts.
“The manufacturing segment recorded a profit of RM59.12 million, driven by higher revenue. The stronger performance was mainly attributed to improved margins in the oleochemical division, reduced losses in the non‑oleochemical sub‑segment, and a turnaround to profitability in the refineries,” it said.
However, the property development profit fell 60.2 per cent to RM3 million on the back of 36.1 per cent lower revenue.
“Included in the investment holdings/others were unrealised foreign currency exchange translation loss of RM28.73 million on inter-company loans denominated in foreign currencies, and surplus on sale of land and government acquisition.
“The farming sector recorded a profit of RM11.37 million, but the bulk of its sales and profit are to be recognised in the next quarter on a delivered basis,” it added.
On prospects, it said looking ahead, CPO prices are expected to trade within the RM3,900 to RM4,300 per tonne range next quarter, with a potential increase in Indonesian export levies.
“Despite the overall strong supply of edible oils globally, plantation performance is expected to remain positive.
“Looking ahead, our chlor-alkali plants will benefit from the lower utility rates and higher capacity utilisation from improved market demand,” it said.
Additionally, it said with sustained results from the plantation segment and improving manufacturing performance, the group expects to deliver favourable results for the 2026 financial year. – BERNAMA
