FGV Holdings Bhd’s net loss narrowed to RM242.19 mil for the financial year ended Dec 31, 2019 (FY19) from RM1.08 bil in FY18.
In a filing with Bursa Malaysia, it said revenue fell slightly to RM13.26 bil from RM13.46 bil previously, although average crude palm oil (CPO) price realised in FY19 declined 11% to RM2,021 per tonne from RM2,282 in FY18.
“This is due to improved full-year CPO ex-mill costs which averaged at RM1,503 per tonne compared with RM1,800 per tonne in FY18,” it said.
The board of directors is recommending a final dividend payment of two sen per share for FY19 which is expected to be paid by mid-July.
For the fourth quarter, FGV recorded a net profit of RM75.79 mil compared to a net loss of RM209.16 mil in the previous corresponding quarter.
“This was achieved despite a 2.4% decline in revenue to RM3.15 bil for the quarter under review from RM3.23 billion previously,” it said.
The decline in 4QFY19 revenue was mainly due to lower fresh fruit bunch production of 1.01 million tonnes, down 12% from 1.15 million tonnes in the previous corresponding quarter.
“This decline was mitigated by higher CPO price realised of RM2,159 per tonne compared to RM2,055 per tonne before.
“Oil extraction rate (OER) for the period under review was 1% lower at 20.53% compared to 20.70% previously,” it said, adding that as a result of lower production volume, ex-mill costs increased marginally by 3% to RM1,691 per tonne from RM1,638 in 4QFY18.
Meanwhile, the sugar division under MSM Malaysia Holdings Bhd registered a loss of RM319.70 mil compared to a profit of RM58.71 mil in the previous financial year, mainly attributable to lower gross profit, higher finance cost incurred following the modification of certain terms, and provision of RM143 mil for impairment of plant and machinery.
FGV group CEO Datuk Haris Fadzilah Hassan said FGV’s plan to diversify its revenue streams is well underway.
In FY20, the group expects additional revenue of RM45 mil from its integrated farming, renewable energy and animal feed businesses, he said.
“While palm oil will remain our mainstay, this is an exciting diversification that will bring us and our smallholder partners added revenue and opportunities for growth,” he added. – Feb 28, 2020, Bernama
