KUALA LUMPUR, Aug 19 — Batu Kawan Bhd’s net profit for the third quarter ended June 30, 2020 (Q3 2020) jumped 318 per cent to RM212.65 million from RM50.83 million in the same period a year ago.

Revenue, however, was almost flat or 0.1 per cent lower at RM3.823 billion from RM3.825 billion.

The group also saw a 548.1 per cent surge in pre-tax profit to RM529.37 million from RM81.68 million previously, due mainly to RM223 million in unrealised foreign currency exchange translation gains on bank and inter-company loans, with the significant appreciation of the Indonesian rupiah against the US dollar and ringgit.

Excluding the above foreign currency exchange impact and provision for impairment of an estate, the group’s profit for the current quarter increased by 52.5 per cent to RM297.36 million from RM194.97 million,” it said in a filing to Bursa Malaysia today.

Batu Kawan said its plantation segment profit was significantly higher by 469.7 per cent to RM230.34 million versus RM40.43 million in Q3 2019, while revenue rose 14.9 per cent to RM1.58 billion.

This was contributed by stronger crude palm oil (CPO) and palm kernel prices, coupled with lower production cost and higher contributions from processing and trading operations.

In contrast, the manufacturing segment reported a 5.9 per cent fall in profit to RM119.14 million, on the back of a 6.8 per cent decline in revenue to RM2.17 billion.

The property development profit dipped 30.7 per cent to RM7.63 million while revenue declined 67.4 per cent to RM15.13 million.

For the nine-month period, net profit rose to RM332.11 million from RM267 million but revenue was lower at RM11.96 billion compared with RM12.12 billion previously.

Going forward, Batu Kawan said the group’s plantation segment is expected to perform better for the financial year 2020 (FY20), in view of the improved CPO prices.

Both the oleochemical and industrial chemical divisions have seen a recovery in demand and therefore, it anticipates their profits to remain satisfactory for FY20.

“Overall, the group expects profit to improve for FY20 in spite of uncertainties of the COVID-19 pandemic,” it added. — Bernama