Nasty surprise for FGV minorities
FocusM | 07 Dec 2018 00:30
In September this year, FGV Holdings Bhd (FGV) announced a turnaround plan to reduce its costs and revive its fortunes. Many doubted its projections, including its yield targets, saying it was too ambitious given the poor outlook for palm oil and the many issues the company faced.
So when the company announced its third quarter financial results recently, the worst fears of its critics seemed to have come true. FGV surprised the market with a massive net loss of RM849.25 mil, of which RM788 mil was due to impairments. In its second quarter briefing to analysts, it had estimated impairments at RM300 mil over a three-year period.
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