FGV 3Q net profit at RM137m versus RM262m net loss a year earlier
FGV posts 3Q PBZT of RM173mil
KUALA LUMPUR: FGV Holdings Bhd posted a profit before zakat and tax (PBZT) of RM173mil for the third quarter ended Sept 30, 2020, as compared to a loss before zakat and tax (LBZT) of RM363mil in the previous corresponding quarter.
In a statement issued to Bursa Malaysia, the group said the higher crude palm oil price and lower losses in the sugar sector contributed to the improved performance.
For the quarter under review, revenue increased to RM3.99mil as compared to RM3.55bil in the same quarter last year.
“I am pleased to report the second consecutive quarter of positive results for FGV.
"While CPO production is in line with national production, FGV’s fresh fruit bunches (FFB) production continues to outpace national production attributed to improving crop recovery and higher mature areas,” said group CEO Datuk Haris Fadzilah Hassan.
On a segmental basis, fresh fruit bunch (FFB) production rose 9% to 1.35 million metric tonne (MT) compared to 1.24 million MT a year earlier due to improved crop recovery and higher mature hectarage.
In the downstream segment, the group registered a lower PBZT of RM23mil versus RM34mil in 3QFY19 due to the low demand for biodiesel and a lower share of results from joint venture companies.
The group's sugar business posted lower LBZT of RM56mil in the quarter as compared to a loss of RM220mil a year earlier as a result of higher sales revenue on better volume in industry and export segments and higher export premium.
"The sugar business recorded lower LBZT in 3Q FY2020 due to higher gross profit margin with improved production costs.
"The improvements were partially offset by write-off and
impairment of bearer plants due to a fire incident in Chuping land, Perlis, and change of accounting treatment on the same assets due to cancellation of sales.
"Operationally, the UF improved to 52% due to capacity consolidation resulting in lower refining cost, better refined sugar processing yield and reduced sales and distribution costs,” Haris Fadzilah said.
In the logistics segment, PBZT fell 12% to RM18mil versus RM21mil in the previous corresponding quarter due to lower bulking throughput offset by higher volume transported for fast-moving consumer goods.
Moving forward, FGV plans to further grow and strengthen its high value-add business activities focusing on Integrated Farming and FMCG are on track, and potentially expedited to provide faster expected returns.
“We expect both FFB and CPO production in 4Q FY2020 to be impacted by weather uncertainties and partial lockdown in Sabah, with the CPO price remaining strong until the end of the year,” Haris Fadzilah added.