FGV 4Q net profit tumbles 79% to RM72mil

KUALA LUMPUR: FGV Holdings Bhd foresees a slight increase in fresh fruit bunches (FFB) production and yield as the labour supply recovers and improved estate costs driven by reduced fertiliser and energy cost.

In the notes accompanying its financial results, the plantation group said the sector remains steadfast on increasing yield, replanting with higher-yielding seeds and enhancing mechanisation.

“In terms of sustainability, the independent assessor is currently conducting a follow-up assessment of our remediation plan. The group aims to submit a petition to CBP to modify the Withhold Release Order (WRO) in 2024,” FGV said.

%The palm industry anticipates that the global palm oil supply for the export market will be affected by the implementation of the B35 biodiesel mandate in Indonesia, weak demand from major importing countries and price competition from rapeseed and sunflower oils.

“Consequently, this is expected to influence the crude palm oil (CPO) price to range between RM3,900 and RM4,200 per tonne,” FGB said, adding.

Meanwhile, FGV said the sugar sector continuously seeks opportunities to improve product offerings while engaging with the government to finalise a sustainable pricing mechanism for the domestic retail segment to ensure food security.

“Moreover, as the rectification plan continues in the Johor refinery, capacity utilisation is projected to improve further in 2024. The introduction of new premium white sugar in the market is also expected to contribute significantly to the company,” it said.

“Barring any unforeseen circumstances, the board anticipates that the group’s financial performance will be satisfactory,” it added.

FGV’s net profit in the fourth quarter ended Dec 31, 2023 plunged 79% to RM71.8mil, or earnings per share of 1.97 sen compared with RM344.3mil, or 9.44 sen in the same quarter last year.

Its revenue fell 12% to RM5.36bil against RM6.1bil a year ago.

For the full financial year (FY23), FGV posted a net profit of RM103mil against RM1.3bil last year while revenue fell to RM19.3bil from RM25.5bil last year.

FGV has declare a final dividend payment of 3.0 sen per share on 3.64 billion ordinary shares under the single-tier system which approximates RM109.44mil for FY23.