KUALA LUMPUR: Kulim (Malaysia) Bhd recorded a pre-tax profit of RM433.81 million for the financial year ended December 31, 2021 (FY21) compared to a loss of RM316.45 million last year.
Group revenue surged 48.56 per cent to RM1.65 billion in FY21 from RM1.11 billion the previous year despite lower sales volume and yields from its plantations.
Kulim said this was achieved on higher average selling prices for crude palm oil and palm kernel, which increased by 60.66 per cent and 77.64 per cent respectively.
It was also supported by lower impairment and provision expenses compared to a year earlier, which helped the company to return to the black.
Kulim managing director Mohd Faris Adli Shukery said it stood to benefit from sky-rocketing palm product prices although it was operationally stretched by insufficient manpower.
"We were naturally pleased with our financial windfall, yet it was with even greater pleasure to see the group gradually shape up into the agriculture-focused, digitally enhanced, and sustainably run organisation that we envisage at the end of our current transformation journey," he said in a statement.
Under the challenging circumstances, Kulim managed to harvest 20.11 tonnes per hectare (ha) from 22.93 tonnes per ha in 2020, higher than the industry average in Johor and Peninsular Malaysia of 17.73 tonnes per ha and 16.24 tonnes per ha respectively.
In the same period, the company processed a total of 1.42 million tonnes of fresh fruit bunches and produced 295,747 tonnes of crude palm oil (CPO).
The oil extraction rate decreased to 20.83 per cent, from 21.04 per cent, yet remained higher than the industry average of 19.68 per cent for Peninsular Malaysia and 19.92 per cent for Malaysia as a whole.
Moving forward, Kulim is set to expand its foray beyond oil palm plantation into an integrated agribusiness player.
It is looking to strengthen its position in the midstream and downstream through partnerships and/or acquisitions of refineries and palm kernel crushing plants.
It is also expanding its livestock business of cattle and sheep while exploring the possibility of partnering with a dairy producer.
The company is eyeing to build a robust and thriving agri-food portfolio to contribute positively to the national food security agenda.
"Our ultimate objective is for Kulim to become a flagship company that can enhance the state and national food security agenda.
"We will seek to establish a food marketplace for smallholders, large private players and government-linked companies," he added.