The decline was cushioned by significantly higher contribution from its fast-food restaurant operations.

First-half net profit fell by annual pace of 70.6% to RM55.3 million from RM188.13 million, although revenue was up 40% to RM2.8 billion from RM2 billion.

"The plantation division recorded lower profit in view of weaker palm products prices that contracted during the quarter compared with prices achieved for the corresponding quarter in 2008.

"In light of the current economic uncertainties the group’s food and restaurants division will continue to focus on value to customers by offering value-for-money products to align with its customers' spending ability," said Kulim which operates the KFC fast-food chain in Malaysia.

Kulim's ownership of KFC is by virtue of its 59.58% stake in QSR Brands Bhd, which in turn is the controlling shareholder of KFC Holdings Malaysia Bhd.

Kulim which owns oil palm plantations in Papua New Guinea and Solomon Islands, is also the controlling shareholder of Malaysian plantation firm Sindora Bhd, with a 78.43% stake.

In quarterly terms, Kulim's second quarter net profit, however, climbed 26.6% from RM24.41 million in the preceding quarter, while revenue rose 12.9 % to RM1.49 billion from RM1.32 billion against the backdrop of strengthening palm oil prices.

"With costs having stabilised and plantation yield expected to be within expectation, the plantation division's performance will be significantly driven by future price levels.

"The oleochemicals business will remain competitive with increasing capacity from regional oleochemicals producers," said Kulim which, in turn, is controlled by state-owned Johor Corp.

No dividends were declared for the period reported.