Kuala Lumpur Kepong : KLK reports RM154.3 million PATAMI for 2Q FY2025 and RM374.7 million for 1H FY2025

KUALA LUMPUR KEPONG BERHAD

197301001526 (15043-V)

Wisma Taiko, No 1 Jalan S.P. Seenivasagam 30000 Ipoh, Perak Darul Ridzuan, Malaysia T: [phone] F: [phone]

https://www.klk.com.my

FOR IMMEDIATE RELEASE 22 May 2025

KLK reports RM154.3 million PATAMI for 2Q FY2025 and RM374.7 million for 1H FY2025

Kuala Lumpur, 22 May 2025 - Kuala Lumpur Kepong Berhad ("KLK" or "the Group") announced a Profit After Tax and Minority Interests ("PATAMI") of RM374.7 million for the first half of the period ended 31 March 2025 (1H FY2025), a 9% increase from RM344.0 million in the previous corresponding period. For the second quarter (Q2 FY2025), PATAMI stood at RM154.3 million, up 31.8% from RM117.1 million in the previous corresponding quarter.

The Group also reported a Profit Before Tax ("PBT") of RM693.9 million for 1H FY2025, compared to RM600.9 million in the same period last year. For Q2 FY2025, Group PBT was RM269.9 million, an increase of 15% from RM234.7 million in the same quarter last year.

The Plantation Division recorded a 42% year-to-date increase in PBT to RM1.03 billion (1H FY2024: RM728.1 million), with Q2 FY2025 PBT contributing RM454.3 million. This performance was driven by higher average selling prices of Crude Palm Oil ("CPO") and Palm Kernel despite the flat Fresh Fruit Bunch ("FFB") yields and Oil Extraction Rate ("OER"), as heavy rainfall and prolonged flooding affected certain regions in both Malaysia and Indonesia. We are confident, production is expected to improve in the second half as weather conditions normalise.

In Q2 FY2025, the Manufacturing Division recorded a loss of RM38.3 million, compared to a profit of RM56.7 million in Q2 FY2024. The Oleochemical sub-segment posted improved results, supported by stronger performance in China and some recovery in Europe. However, the Refinery operations remained loss-making, primarily due to heightened market volatility. Additionally, the Manufacturing segment was impacted by a net non-cash mark-to-market loss of RM143.3 million on hedged US dollar sales, driven by the strengthening of the US dollar in first half of FY2025.

Group earnings were also affected by inter-company loans foreign exchange translation losses of RM74.0 million mainly due to weakening of Indonesian Rupiah.

The Property Division continues to contribute steadily, supported by the ongoing residential projects in Bandar Seri Coalfields and Caledonia. This segment recorded a PBT of RM11.1 million for 1H FY2025, compared to RM19.5 million in the same period last year. For Q2 FY2025, the division contributed RM3.5 million, compared to RM7.6 million in the same quarter last year.

The Group's 27% owned associate company, Synthomer plc, continued to weigh on performance. However, the Group recognised a lower equity share of loss of RM63.3 million for Synthomer's second half FY2024 results, compared to a loss of RM87.2 million in the prior corresponding period. Improvements were seen in Synthomer's Adhesive Solutions and Health & Protection businesses, although challenges remain in its Coatings & Construction Solutions segment.

KLK declares an interim single tier dividend of 20 sen per share, to be paid on 29 July 2025.

KLK Executive Chairman Tan Sri Dato' Seri Lee Oi Hian said:

Despite the volatile external environment, our Plantation Division has continued to deliver strong results. We anticipate production to improve in the second half, though fluctuations in CPO prices and external demand remain key uncertainties. Our Oleochemical sub-segment's recovery remains encouraging, and we are closely managing challenges in the refining business. Moving forward, we remain watchful focusing on operational efficiency, long-term value creation and sustainability."

END

About Kuala Lumpur Kepong Berhad (KLK)

KLK started as a plantation company more than 100 years ago and today, the development of oil palm remains the Group's core business. As of September 2024, KLK has about 300,000 hectares of planted area. Our landbank is spread across Malaysia (Peninsular and Sabah), Indonesia (Belitung Island, Sumatra, as well as Central and East Kalimantan) and Liberia.

Since the 1990s, KLK has diversified into resource-based manufacturing (refinery, oleochemical, derivatives and specialty chemicals) and vertically integrated its upstream, midstream and downstream businesses. The Group has since expanded its manufacturing operations resulting in internationally-scaled oleochemicals operations in Malaysia, Indonesia, China and Europe.

The Group started capitalising on the strategic location of its landbank in Peninsular Malaysia by branching into property development in 1990. It is presently focused on Bandar Seri Coalfields, a 1,001-acre township in Sungai Buloh that offers a mix of residential, commercial and recreational spaces, with amenities such as schools, parks, and retail outlets to cater to the needs of its growing community. Caledonia in Ijok, a smaller-scale development, complements this with thoughtfully planned homes and green spaces, providing a practical and serene living environment. Both projects aim to create well-rounded communities while incorporating sustainable practices.

For more information, please contact:

Chin Su Ci Annabelle Chu

Senior Manager of Corporate Communications Investor Relations Manager [e-mail] [e-mail] https://www.klk.com.my