FGV Holdings Berhad posted a profit after tax and minority interest PATAMI) of RM103 million on the back of RM19.4 billion revenue for the financial year ended 31 December 2023 (FY2023), this was significantly lower compared to FY22 when the group recorded RM26.5 billion revenue and net profit of RM1.32 billion.
The group said the performance occurred amidst a challenging market environment characterised by a margin squeeze in the Plantation Sector due to lower crude palm oil (CPO) and palm kernel (PK) prices. Additionally, higher CPO cost ex-mill and reduced fresh fruit bunch (FFB) processed in external crops, sourced from FELDA settlers and independent smallholders, contributed to these challenges.
However it said the financial performance was partially offset by improvement reported in the Logistics and others sector and narrow loss posted in the Sugar Sector.
As for the quarter under review ended 31 December 2023 (4Q FY2023), the Group’s profit before tax (PBT) was recorded at RM182 million and operating profit of RM210 million. This comes from Q4revenue of RM5.36 billion and profit after tax of RM71 million which was drastically lower compared to Q4FY22 when the group recorded revenue of RM6 billion and PAT of RM344 million.
The Sugar Sector reported improvement in this quarter, registering a profit of RM54 million compared to the RM46 million loss in the corresponding quarter of the previous year. The profit was attributed to an improved margin achieved, stemming from a higher average selling price, increased overall sales volume, and better capacity utilisation. Additionally, the sector received incentives for certain packed sugar sold in the domestic market.
The Group announces a final dividend payment of 3.0 sen per share, translating to a total dividend payout of RM109.4 million
On the poor outcome, the group said the challenges faced by the palm oil industry in 2023 have been significant, the Group were challenged with low yield, ageing trees, declining planted areas, and high production costs. However, we remain
steadfast in our commitment to overcome them and drive sustainable growth. As we look ahead to 2024, we are optimistic and focused on strategic initiatives such as disciplined replanting, enhancing operational efficiency, and fostering strong partnerships with our suppliers. Together, we are confident in our ability to navigate these challenges and deliver favourable results for our stakeholders,” said Dato’ Nazrul Mansor, Group Chief Executive Officer of FGV.
