Malaysian plantation group's sales, earnings rise strongly

By Liz White, ERJ staff

Kuala Lumpur, Malaysia-Rubber plantation and glove maker Kuala Lumpur Kepong Berhad has reported third quarter revenue of M$978.5 million (Euros 197 million), a rise of 8 percent over the same period of 2003. Operating profit for the Malaysian group for the quarter rose 37 percent to M$978.5 million.

For the 12 months to 30 Sept the group had revenue of M$ 3883.5 million (M$3473.5 million for 2003) and before tax profits of M$ 610 million (M$ 555.5 million for the same period of 2003).

For the twelve month period, KLK's plantation business formed nearly 45 percent of sales, the manufacturing side-which includes the rubber glove business-some 38 percent, and retailing, property development, and invstment holdings made up the rest.

Multinational KLK retains oil palm and rubber plantations as its core business, but the group points out that it has expanded downstream into resource-based manufacturing, in particular oleochemicals, cocoa processing and rubber processing.

KLK describes itself as amongst the top plantation companies in Malaysia, owning more than 360 000 acres in Peninsular Malaysia (160 000 acres), Sabah (100 000 acres) and Indonesia (100000 acres).

Although KLK's rubber planting in Peninsular Malaysia is dropping in favour of oil palm, this has been counteracted by new rubber areas are being planted in Indonesia. The group says this will enable it to “maintain a steady yearly production of about 25 000 tonnes of premium SIR/SMR grades and latex concentrate, meeting with ISO 9002 standards.

Oil palm is KLK's major crop. Annual production of 1.9 million tonnes of Fresh Fruit Bunches (FFB) is expected to increase rapidly in the years ahead as “vast new plantings in Sabah and Indonesia are progressively brought into harvesting,” the group said.

KLK's processed the crop in its own mills and refineries.

Through the well-known Crabtree & Evelyn brand, KLK is involved in the manufacture and retail of personal care products, toiletries, home fragrances and fine foods. Through the strategic location of its land in Malaysia, KLK has also been able to go into property development.

KLK makes rubber and non-latex examination gloves, household and industrial gloves via its unit KL-Kepong Rubber Products Sdn Bhd and is also a supplier of Hevea wood.