The group’s revenue fell 24% to RM1.53 billion from RM2.03 billion the same quarter last year while basic earnings per share dropped to 17.86 sen versus 23.04 sen previously.

According to a Bursa Malaysia filing yesterday, the group’s plantations profit fell 46.8% to RM184.30 million mainly impacted by lower average crude palm oil price (ex-mill) of RM2,330 per ton versus RM3,124 a year ago, while its oleochemical operations for the manufacturing sector posted a lower profit of RM18 million as compared with RM58.8 million in the same quarter last year.

The group also said Davos Life Science Pte Ltd, its nutraceutical plant in Singapore, had recognised an impairment of assets provision of RM25.3 million as compared with RM41.2 million during the previous corresponding quarter.

KLK said its retail sector suffered a higher loss which reflected the poor consumer market sentiments, especially in the US, but pointed out that the corresponding quarter’s results were boosted by the surplus of RM86.5 million arising from the disposal of a 60% stake in a cocoa products manufacturing subsidiary.

“However, the improvement in the market value of our overseas quoted investment, Yule Catto & Co plc, had resulted in the writeback of RM94.4 million on the allowance for diminution in value of investment,” the group added.

For the nine months ended June 30, KLK’s net profit shed 52% to RM368.77 million from RM773.15 million in the same period last year while revenue declined to RM4.85 billion from RM5.7 billion.

Its basic earnings per share (EPS) for the nine months dropped to 34.63 sen from 72.6 sen previously.

On its prospects, KLK said the plantations sector which is its core business, should continue to yield satisfactory returns albeit below that of the previous year, adding that the performance of certain problematic companies was being addressed and the global economic slowdown had affected  earnings of the manufacturing sector.

KLK added that its directors were of the opinion that the group’s profit for the current financial year would be substantially lower than that of last year.

Meanwhile, Batu Kawan Bhd’s net profit for the third quarter ended June 30, 2009, declined 16% to RM101.82 million from RM120.95 million a year ago due to lower profit from its plantation associate KLK and a chemical subsidiary reported a loss.

A Bursa Malaysia filing yesterday showed Batu Kawan’s revenue dipped 15% to RM61.75 million from RM75.41 million from the same quarter last year while basic EPS  fell to 23.88 sen from 28.01 sen.

For the nine months ended June 30, 2009, the group’s net profit  fell 38% to RM231.08 million versus RM375.60 million the same period last year while revenue declined marginally to RM182.22 million against RM188.47 million.

KLK’s share price yesterday closed unchanged at RM13.28 while Batu Kawan shed six sen to close at RM9.30.

This article appeared in The Edge Financial Daily, August 27, 2009.