FGV Holdings Berhad recorded a significant jump in profit before tax of RM1.49 billion for the Group’s nine-month period ended 30 September 2022 (9M FY2022), compared to RM1.02 billion in the same period last year.
The Group’s revenue rose by 45 percent year-on-year (Y-o-Y) to RM19.46 billion compared to the previous RM13.39 billion, while Profit After Tax & Minority Interests (PATAMI) grew by 40 percent to RM985 million from RM703 million. FGV’s operating profit also increased 53 percent to RM1.78 billion Y-o-Y in 9M FY2022 compared to RM1.16 billion reported in the previous corresponding financial period.
Dato’ Nazrul Mansor, FGV’s Group Chief Executive Officer said, “I am pleased to report that the Group is on course for a strong close this financial year. Our improved operating performance for 9M FY2022 is mainly attributed to higher palm products’ margins due to higher Crude Palm Oil (CPO) price realised and higher throughput and tonnage carried by the Logistic Sector.” The result was partially offset by the losses incurred in the Sugar Sector under its subsidiary, MSM Malaysia Holdings Berhad (MSM), mainly due to higher production costs by 24 percent.
For Q3, the group recorded higher revenue of RM6.18 billion due to a higher average CPO price realised versus RM5.31 billion in the same period last year. Despite the higher revenue, the Group reported a lower PBT of RM385 million compared to RM508 million in the corresponding quarter last year due to the losses incurred in Sugar Sector and lower CPO and Processed Palm Oil (PPO) sales volume by Plantation Sector. Plantation Sector 3Q FY2022 FGV’s Upstream Operations reported an increase in revenue of RM3.71 billion compared to RM3.24 billion during the same period last year. Despite the higher margin achieved, CPO Cost ExMill increased by 39 percent to RM2,262 per MT due to lower Fresh Fruit Bunch (FFB) production, increased manuring, and labour costs as a result of the minimum wage implementation.
