KIM LOONG RESOURCES BERHAD
Review of the performance of the Company and its principal subsidiaries
The Group achieved a 115% or RM16.37 million increase in profit before tax (“PBT”) with a 20% or RM44.38 million increase in revenue for the current year ended 31 January 2007 as compared to the preceding year.
The impressive increase in PBT is mainly contributed by higher production from both the plantation and milling operations which led to better profit margin for both operations.
The FFB produced by the plantation operations and FFB processed by the milling operations increased by 23% or 41,000 MT and 15% or 81,000 MT respectively from 180,000 MT and 536,000 MT achieved for the preceding year.
Comparison of profit before tax for the quarter reported on with the immediate preceding quarter The PBT for the 4th quarter increased by 29% or RM2.56 million higher than RM8.81 million achieved last quarter ended 31 October 2006. The increase in PBT is mainly contributed by increase in CPO price in the current quarter as well as 10% increase in FFB processed in our Keningau Mill.
Current financial year prospects
For the financial year ending 31 January 2008, we expect a significant jump in the production quantities from both the plantation and milling operations as compared to financial year 2007. With a more productive age profile of the palms, the plantation operations production is expected to increase more than 20%. For the milling operations, the FFB processed by the mill at Keningau is expected to further increase and will continue to contribute in boosting up the palm oil production quantity for the Group.
Barring unforeseen circumstances and based on the current palm oil prices, the Board expects the Group’s profit to be much better for the financial year ending 31 January 2008 as compared to the financial year 2007.
