Kuala lumpur: Batu Kawan Bhd announced a net loss of RM653.16 million for the third quarter of 2026, which concluded on June 30, 2026. This contrasts with a net profit of RM182.92 million in the same period the previous year.

According to BERNAMA News Agency, the primary reason for the loss was a RM1.62 billion impairment loss related to its subsidiary, Kuala Lumpur Kepong's investment in the UK-listed associate Synthomer plc. Despite the net loss, Batu Kawan's revenue increased to RM7.24 billion from RM6.60 billion in the same quarter last year, driven by improved contributions from both the plantation and manufacturing segments.

Batu Kawan clarified in a Bursa Malaysia filing that the impairment is accounting in nature and does not impact the group's operating cash flows, liquidity position, debt servicing capability, or dividend-paying capacity. For the first nine months of 2025, ending September 30, 2026, the group reported a net loss of RM306.04 million, a shift from a net profit of RM398.40 million a year earlier. Revenue for the same period rose to RM20.47 billion from RM19.24 billion, aided by higher sales volumes and lower production costs.

The company anticipates its plantation segment to maintain strong performance, bolstered by healthy production levels and favorable palm product prices, although it expects operating costs to remain high. The oleochemical division is projected to benefit from improving market conditions, while refinery and kernel crushing operations may face challenges due to industry overcapacity and margin pressure. The industrial chemical division is noted for delivering stable performance, supported by higher demand.

Despite volatile macroeconomic conditions and geopolitical uncertainties, Batu Kawan remains cautiously optimistic about achieving a favorable performance for the remainder of the year.