JOHOR BAHARU, July 21 – Kulim (Malaysia) Berhad (KULIM) celebrates another remarkable year of financial performance for the Financial Year ended 31 December 2022 (FY2022). The company’s exceptional results were driven by high commodity prices and enhanced operational efficiencies, leading to a surge in profit before tax and zakat (PBTZ) by 22.32% to RM530.66 million compared to RM433.81 million in FY2021. KULIM achieved a substantial 12.83% increase in revenue, amounting to RM1.86 billion compared to RM1.65 billion in FY2021.
The plantation segment emerged as the major revenue contributor, generating RM1.75 billion. The company’s financial position strengthened, reflected in an improved net gearing ratio of 0.56 times, a significant enhancement compared to 0.63 times in FY2021. Despite challenges faced in the plantation sector, including an acute labor shortage, KULIM managed to increase Fresh Fruit Bunches (FFB) production by 7.36%, from 1,035,342 MT in 2021 to 1,111,496 MT.
Palm Product Yield (PPY) improved from 5.26 MT/ha to 5.65 MT/ha, and Yield Per Hectare (YPH) increased from 20.11 MT/ha to 22.06 MT/ha. These figures surpassed industry averages in Johor and Peninsular Malaysia. Although the Oil Extraction Rate (OER) decreased slightly to 20.27% from 20.83%, it remained higher than industry averages. The successful financial performance allows KULIM to declare a total dividend of RM175 million, including a first interim dividend of 2,500 sen per share (equivalent to RM100 million) and a second interim dividend of 1,875 sen per share (equivalent to RM75 million) for FY2022.
In the Agrofood segment, KULIM expanded its intensive vegetable farming operations from 10 acres to 20 acres, cultivating various crops such as cucumbers, long beans, chili, brinjal, okra, and bitter gourd. The livestock operations also experienced growth, with a 9.22% increase in the cattle population to 8,300 heads and a 47.40% increase in the sheep population to 500 heads. Mohd Faris Adli Shukery, Director of KULIM, expressed confidence in the company’s success for 2023 despite anticipated challenges.
KULIM aims to leverage robust demand and continue its transformation program, expanding its core businesses of Plantation and Agrofood while upholding Environmental, Social, and Governance (ESG) principles. The company will prioritize enhanced mechanization and digitalization to establish itself as a sustainable, profitable, and inclusive agribusiness player. As part of its transformation agenda, KULIM consolidated all its plantation business under its subsidiary Johor Plantations Berhad. Focused on palm oil production, Johor Plantations aims to strengthen its position as an upstream and midstream player while exploring opportunities to expand into the downstream oil palm sector, ultimately becoming an integrated player in the industry.
This expansion will enable the production of specialty products with high demand and better profit margins. Through its Agrofood segment, KULIM established Farmbyte Sdn Bhd to diversify its portfolio and contribute to national food security by building a sustainable Agrofood industry using technology. With a clear vision and strategic initiatives, KULIM is poised for continued growth and success in the agribusiness sector.
