FGV Remains Resilient and Posts Net Profit of RM521.86 million

  •  Revenue up 30.8%, operating profits increased by 10% 
  • Group’s Q4 revenue up 17% to RM4.30 billion 

KUALA LUMPUR, 24 FEBRUARY 2015 – Felda Global Ventures Holdings Berhad (FGV), the global agribusiness and palm oil company, has recorded a profit after taxation and zakat of RM521.86 million for the financial year ended 31 December 2014.

FGV’s fourth quarter net profit rebounded from a net loss of RM9.3 million in the preceding quarter to a net profit of RM20.21 million.

FGV posted a revenue of RM16.4 billion in 2014, a rise of 30.8% from the previous year. It delivered a strong growth in gross profit of RM2.14 billion compared to RM878.27 million in the same period the last financial year.

At the same time, operating profit increased by 10% to RM1.03 billion in 2014 from RM939.66 million, the year before

FGV’s Group President and Chief Executive Officer, Dato’ Mohd Emir Mavani Abdullah said, FGV has also realised a higher average crude palm oil (CPO) price of RM2,410 per metric tonne (MT) compared to RM2,333 per MT in 2013 and a higher oil extraction rate (OER) of 21.01% compared 20.44% from the previous year.

“As earlier reported, one of the main reasons for the revenue growth was attributed to Felda Holdings Bhd. (FHB) being fully consolidated into FGV’s financial performance. Through this, FGV has obtained operational efficiencies as well as synergies within the plantation value chain of the FGV Group.

Our ability to drive operational improvements and efficiencies, as well as reduce operational costs at the plantation sites have enabled us to remain resilient and achieve a satisfactory performance, amidst the ever changing market conditions

“Our ability to drive operational improvements and efficiencies, as well as reduce operational costs at the plantation sites have enabled us to remain resilient and achieve a satisfactory performance, amidst the ever changing market conditions,” said Emir.

On the upstream performance, Emir said the company continues to undertake aggressive replanting of 15,000 hectares a year, which started in 2012. Therefore, FGV’s CPO production volume and fresh fruit bunch (FFB) processed declined slightly. One of the

contributing factors to the decrease in FFB is climate challenges including drought and to a lesser extent, floods.

Nevertheless, he added, FGV’s FFB production will further improve in the coming years when a more balanced age profile of trees is achieved, with a target of 60% prime palm by 2020.

Looking forward for this year, Emir said, with lower crude oil price, weakening Ringgit against US Dollar and uncertainty CPO prices, FGV expects 2015 to be another challenging year for the Group and the industry.

“The cold season may hamper CPO demand in the short term but CPO will be back in demand from the traditional markets such as Pakistan, India, China and the European Union (EU) once the warmer season and festive season kicks in,” he added.

In line with the aspirations of the strategic blueprint, Emir said FGV continues to chart new milestones with the incorporation of its two new companies namely PT Bumi Agro Nusantara, an entity based in Indonesia and FGV Trading Sdn. Bhd. (FGVT), a trading and marketing arm of FGV under the new enhanced business model.

“While the incorporation of PT Bumi Agro Nusantara is part of our upstream expansion, FGVT plays an important role in streamlining our internal palm value chain via the tolling mechanism. With refineries and mills focusing on efficiency and costs saving, our trading arm will focus on trading of physical palm oil related products, majority of which are produced by our Group.

These two companies will open a new chapter for the Group, as they are expected to contribute towards the 2015 performance,” he said.

On top of this, FGV also aims to strengthen and restructure its Group of companies through the consolidation and divestment of non-core businesses and non-performing assets. With a sound management plan in place, FGV has laid the foundations for sustainable growth through the 2014 transformation initiatives that will improve operational efficiencies to ensure returns to the Group and ultimately its shareholders.

For the financial year, FGV Board is recommending a final dividend of 4 sen per share totalling RM145.93 million. It has earlier paid out an interim dividend of 6 sen per share totalling RM218.89 million.

“We would like to accord our thanks to our loyal shareholders who continue to support FGV in our growth.” said Emir.

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FGV posts Q3 2014 revenue growth of 34.3% to reach RM4.32 billion

  • Operating profits increased by 98.3%; Profit before tax grew by 10% 
  • Group’s 3Q gross profit margin up 14.3% from 9.3% in 2013 

Kuala Lumpur, 27 November 2014 – Felda Global Ventures Holdings Berhad (FGV), the world’s largest producer of Crude Palm Oil (CPO), has recorded revenue of RM4.32 billion for the third quarter (Q3) ended 30 September 2014, up 34.3% from the same quarter a year earlier. This was driven by the consolidation of Felda Holdings Berhad (FHB) and Pontian United Plantations Berhad (PUP).

“Not only has the injection of FHB and PUP into FGV had an immediate, positive impact on the group’s revenues, it has also allowed FGV to acquire greater alignment and control of the entire plantation value chain and attain higher operational efficiencies and synergies,” said FGV’s Group President and Chief Executive Officer, Dato’ Mohd Emir Mavani Abdullah.

Gross profits for the third quarter more than doubled to RM501.33 million, while operating profits increased by 98.3%, and profit before tax (PBT) grew by 10%. For the nine months ended 30 September 2014, FGV’s group revenue rose 36.4% to RM12.13 billion, compared with the corresponding period in 2013, while operating profits rose by 74% to RM1.02 billion.

FGV’s gross profit margin rose to 14.3% in the third quarter from 9.3% in 2013.

Dato’ Mohd Emir explained that FGV has been operating in a challenging global business environment, with CPO prices falling to a five-year low during the third quarter, record harvests of US soybeans, and the narrowing price difference between soy oil and palm oil increasing the competitive landscape for FGV.

FGV also recorded a RM98.9 million fair value charge in the third quarter relating to its Land Lease Agreement, up 140.9% from the same quarter in 2013; and RM105.54 million of commodity realised and unrealised losses linked to forward and future contracts in FGV’s downstream operations. These factors contributed to a 61.2% drop in net profits during Q3 2014, which totalled RM22.99 million in the three months from a year earlier.

Dato’ Mohd Emir stated: “While the last quarter has been a particularly challenging business environment for FGV, our core business activities remain strong and we are taking prudent steps to ensure continuing earnings growth.”

FGV expects the global market for CPO prices to improve in coming quarters, an expectation shared by many leading analysts, which will have a positive impact on its revenue outlook. This outlook will be strengthened by the exemption of CPO export duties until the end of 2014, as well as the introduction of the government’s B7 biodiesel mandate.

“Revenue growth is anticipated to increase as CPO prices are expected to continue rising into the first quarter of next year. At the same time, ongoing acquisitions of palm plantations with the optimal age profile, as well as our annual replanting programme of 15,000 hectares will continue to ensure that FGV’s plantation profile and yields will steadily improve in the years ahead,” Dato’ Mohd Emir stated.

“Looking beyond, group-wide transformation and operational improvement continue to be the watchwords for FGV. We are dedicating our efforts and resources to improving every facet of operations, and are putting in place the processes and foundations to meet growing global demand for palm oils and secure the profits of the future.”

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Perolehan FGV naik 34.3% kepada RM4.32 bilion suku ketiga

  • Keuntungan operasi naik 98.3%, keuntungan sebelum cukai naik 10%. 
  • Keuntungan kasar FGV naik 14.3% berbanding 9.3% pada 2013. 

Kuala Lumpur, 27 November – Felda Global Ventures Holdings Berhad (FGV), pengeluar minyak sawit mentah (MSM) terbesar dunia, berjaya merekodkan peningkatan perolehan sebanyak RM4.32 bilion untuk tahun kewangan berakhir 30 September 2014, naik 34.3 peratus berbanding suku sama tahun lalu. (more…)

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