KLK bites the bullet with hefty Synthomer impairment, dragging group into the red in 3Q
Kuala Lumpur Kepong Bhd (KLK) reported its first quarterly net loss after a massive RM1.62 billion impairment charge related to its investment in Synthomer plc. Excluding this one-off accounting adjustment, the company would have shown significant profit growth.
Why it matters
Illustrates the impact of non-cash accounting adjustments on corporate financial reporting and investor perception.
BURSA SGX Home Highlight Make The Edge Malaysia your preferred source on Google KUALA LUMPUR (Aug 24): Kuala Lumpur Kepong Bhd (KL: KLK ) slipped into the red in its latest quarterly results after making a massive RM1.62 billion impairment charge to slash the carrying value of its investment in loss-making UK-listed specialty chemicals associate Synthomer plc to reflect its depressed market valuation.
The non-cash and non-operational accounting adjustment is to "decisively remove recurring and uncertain drag on KLK's earnings ahead, with no expected impact on cash flow and dividend outlook", the plantation giant said in a statement on Monday.
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