FGV Holdings Berhad posted a profit before tax (PBT) at RM501 million in its first quarter ended 31 March 2022, a significant improvement compared to RM15 million last year. This is mainly contributed by a higher margin of palm products, downstream, fertilizers, and logistic business.
For the period under review, crude palm oil price averaged at RM5,058 per metric tonne (MT), which is 59 percent higher than the average CPO price realised in 1Q FY2021 of RM3,172 per MT. The Group’s revenue rose to RM5.85 billion from RM3.39 billion a year earlier, a 73 percent year-on-year jump, backed by higher average CPO price, strong volume, and higher price for consumer and fertiliser products.
FGV Group’s Chief Executive Officer, Mohd Nazrul Izam Mansor said, “We will strive to keep this positive momentum to meet the expectations of our stakeholders and to achieve the targets set for 2022.”
In 1Q FY2022, FGV recorded earnings before interest and taxes of RM509 million on the back of RM668 million operating profit, but was offset by RM159 million LLA fair value adjustment FGV’s Plantation Sector recorded an increase in operating profit of RM664 million versus RM108 million in 1Q FY2021, driven by higher CPO price and improved CPO/PPO sales volume. In the upstream segment under the Plantation Sector, FGV recorded an increase in operating profit of RM489 million in 1Q FY2022 compared to RM91 million in 1Q FY2021.
Although revenue improved to RM593 million for the quarter under review from RM515 million a year earlier, FGV’s Sugar Sector under its subsidiary, MSM Malaysia Holdings Berhad (MSM) registered an operating loss for the current quarter due to a lower margin resulting in higher production cost and lower UF.
FGV will expand its food-producing activities, especially in producing fresh produce. One of the biggest initiatives is with Baladna Dairy Facility. The collaboration was signed in 2019 and it will become a large-scale dairy project in Chuping Valley, Perlis. They will also be bringing more products to cater to the consumer’s needs such as SAJI Basmathi and SAJI Aroma
(Fragrant rice) which will be launched in Mid-June 2022.
Apart from that, FGV via its subsidiary FGV Integrated Farming Holdings Sdn Bhd (FGVIF), has launched Alma, high-quality animal feed which uses palm kernel cake (PKC). FGV targets to produce 75,000 tonnes of animal feed this year, a significant increase from 40,000 tonnes produced last year, in an effort to cater for the increasing demand in the meat farming industry such as cow, goat, rabbit and chicken.
