28 May 2021

KUALA LUMPUR, 28 May 2021 – FGV Holdings Berhad (FGV) recorded a higher operating profit of RM186 million in its first quarter ended 31 March 2021, a significant improvement compared to an operating loss of RM56 million in the previous corresponding quarter. This is mainly contributed by higher margin of palm products and better performance of its Sugar business.

For the period under review, crude palm oil (CPO) price averaged RM3,172 per metric tonne (MT), which is 19 percent higher than the average CPO price realised in 1Q FY2020 of RM2,669 per MT. The Group’s revenue rose to RM3.39 billion from RM2.78 billion a year earlier, a 22 percent year-on-year (y-o-y) jump, backed by higher average CPO price, strong volume and higher price for consumer products and strong volume for fertilisers.

Azman Ahmad, FGV Group’s Officer-In-Charge and Group Divisional Director of Logistics & Support Businesses Sector said, “In line with sustained high CPO and processed palm oil (PPO) average prices realised, the Group has recorded a stronger operating profit attributed by higher margins in our Plantation and Sugar businesses. However, our bottom line was affected by adjustment on Land Lease Agreement (LLA) fair value charges.”

In 1Q FY2021, FGV recorded earnings before interest and taxes (EBIT) of RM42 million on the back of RM186 million operating profit, but was offset by RM144 million LLA fair value adjustment.

FGV’s Plantation Sector recorded a lower loss before zakat and tax (LBZT) of RM51 million versus RM147 million in 1Q FY2020, a 66 percent increase y-o-y attributed to improvement in CPO margin in tandem with higher average CPO price realised and lower CPO cost ex-mill.

In the upstream segment under the Plantation Sector, FGV recorded a lower LBZT of RM63 million in 1Q FY2021 compared to LBZT of RM137 million in 1Q FY2020. This was attributed mainly by higher margin in palm products. Meanwhile, its revenue under the segment rose to RM1.78 billion in 1Q FY2021 versus RM1.35 billion in the corresponding quarter.

Additionally, fresh fruit bunches (FFB) production increased to 0.74 million MT for the quarter under review compared to 0.71 million MT in the corresponding quarter, while FFB yield increased to 2.93 MT/Ha compared to 2.81 MT/Ha, where both increased by 4 percent y-o-y. This is primarily due to improved crops recovery as well as higher prime and reduced old palm age areas.

However, CPO production decreased marginally by 2 percent y-o-y to 0.505 million MT compared to 0.514 million MT in the last corresponding quarter due to decrease in FFB processed, especially from external parties. Oil extraction rate (OER) for the quarter under review also decreased slightly to 20.05 percent compared to 20.10 percent a year earlier due to lower quality of FFB processed which resulted from heavy rainfalls.

“It is worth noting that FGV sources two-thirds of its FFB from external suppliers in comparison to other plantation players who sources less than 5 percent of FFB externally. This presents a unique set of challenges for FGV, especially when prices increase sharply for the current month and decrease for forward months. Shortage in migrant workers supply and torrential rains also impacted our plantation’s overall performance for the period under review,” said Azman Ahmad.

As a result of the reduction in estate cost, CPO cost ex-mill decreased significantly by 9 percent y-o-y to RM2,015 per MT compared to RM2,212 per MT. Meanwhile, utilisation factor (UF) decreased slightly by 1 percent y-o-y to 50.17 percent from 50.45 percent due to lower volume of third party crops.

The Group’s downstream segment under the Plantation Sector registered a PBZT of RM16 million in 1Q FY2021 compared to RM10 million in the preceding year. This improvement is due to higher margin realised from crude palm kernel oil (CPKO) sales and higher share of profit in joint-venture business.

FGV’s consumer product sales volume rose by 18 percent y-o-y to 91,138 MT compared to 77,487 MT underpinned by a surge in sales volume in bulk segment, mainly due to an increase in export market sales. Meanwhile, the segment recorded reduced biodiesel sales volume by 33 percent y-o-y to 12,384 MT compared to 18,503 MT caused by lower demand of palm methyl ester (PME) local mandate from petroleum companies affected by the COVID-19 outbreak and Movement Control Order (MCO) 2.0.

In addition, the Research & Development (R&D) and Fertiliser segment under FGV’s  Plantation Sector recorded a lower LBZT of RM4 million for the period under review compared to RM20 million LBZT a year earlier, contributed by higher sales volume from fertiliser products and seeds business.

FGV’s Sugar Sector under its 51 percent owned subsidiary, MSM Malaysia Holdings Berhad (MSM), has kept its momentum and posted positive results for the second consecutive quarter. The sector recorded a PBZT of RM51 million for the quarter under review, a significant improvement from LBZT of RM28 million a year earlier. The sector’s revenue rose slightly to RM515 million in 1Q FY2021 compared to RM513 million in the corresponding quarter.

FGV’s Logistics Sector posted a slightly higher PBZT of RM16 million compared to RM15 million in the previous corresponding quarter. The slight improvement is mainly due to the increase in transportation rates charged as well as higher tonnage carried by 5 percent and 9 percent respectively.

Going forward

Two of FGV’s subsidiaries, MSM and FGV Integrated Farming Holdings Sdn. Bhd. (FGVIF) has, in late April, entered into a binding term sheet on the respective disposal and acquisition of 100 percent stake of MSM’s wholly-owned subsidiary, MSM Perlis Sdn Bhd (MSM Perlis).

MSM Perlis holds 11 parcels of agricultural and industrial land that have been earmarked for the development of the FGV Chuping Agro Valley (FCAV) in Perlis by FGVIF, consisting of integrated high-value cash crop plantation activities and an expanding dairy farming business.

The development of phase 1 Integrated High-Value Cash Crop Plantation with focus on MD2 Pineapple planting in Chuping Agro Valley has commenced in May 2021. The overall development of 1,200 hectares is expected to be completed over a five-year period with the majority of physical development being delivered within the year 2021 and 2022.

“I am also excited to announce that developments under FGV’s Integrated Farming sector are underway. We are looking to launch more downstream and higher value-added products such as beverages and food-based products from our pineapple, banana, and other crops under the Ladang’57 brand. In addition to that, healthier rice varieties as well as Bright Cow’s single served products are also targeted to hit the market by this year,” added Azman Ahmad.

“FGV expects CPO price to remain high but the Plantation Sector’s operating environment will remain challenging due to the COVID-19 pandemic and tight labour situation. Our Sugar business remains optimistic on its turnaround plan and the ability to achieve sustainable growth with additional focus on export. Domestic sugar consumption is expected to remain stable due to the Movement Control Order. Meanwhile, our Logistic business will continue with its strategies to improve sales volume, margins, and operational efficiencies,” said Azman Ahmad.


KUALA LUMPUR, 28 Mei 2021 – FGV Holdings Berhad (FGV) merekodkan keuntungan operasi lebih tinggi sebanyak 186 juta pada suku pertama yang berakhir pada 31 Mac 2021 dengan penambahbaikan ketara berbanding kerugian operasi sebanyak RM56 juta pada suku tahun sama sebelumnya. Keadaan ini disumbangkan oleh margin lebih tinggi produk sawit di samping prestasi perniagaan gula yang memberangsangkan.

Bagi suku tahun dikaji, harga purata minyak sawit mentah (MSM) ialah RM3,172 setiap tan metrik (MT) iaitu 19 peratus lebih tinggi berbanding harga purata MSM yang direalisasikan pada Suku Pertama Tahun Kewangan 2020 (S1 TK2020) sebanyak RM2,669 MT. Pendapatan Kumpulan melonjak kepada RM3.39 bilion dari RM2.78 bilion pada tahun sebelumnya iaitu lonjakan sebanyak 22 peratus tahun-ke-tahun (y-o-y) disokong oleh harga purata MSM yang lebih tinggi, volum kukuh serta harga yang lebih bagi produk pengguna dan baja.

Azman Ahmad, Pegawai Bertanggungjawab (Officer-In-Charge) Kumpulan FGV dan Pengarah Bahagian Sektor Logistik dan Perniagaan Sokongan berkata, “Selaras dengan pengekalan harga purata MSM direalisasikan dan minyak sawit siap diproses (MSP) yang tinggi, Kumpulan mencatatkan pengukuhan keuntungan operasi menerusi margin tinggi di bahagian perladangan dan perniagaan gula. Bagaimanapun, keuntungan FGV terjejas disebabkan oleh caj pelarasan nilai semasa ke atas Perjanjian Pajakan Tanah (LLA).”

Pada S1 TK2021, FGV mencatatkan pendapatan sebelum cukai dan faedah (EBIT) sebanyak RM42 juta yang disokong oleh keuntungan operasi sebanyak RM186 juta, namun dimbangi oleh pelarasan nilai semasa LLA sebanyak RM144 juta.

Sektor Perladangan FGV merekodkan kerugian sebelum zakat dan cukai (LBZT) sebanyak RM51 juta berbanding RM147 juta pada S1 TK2020, peningkatan 66 peratus y-o-y yang disumbangkan oleh pembaikan dalam margin MSM selaras dengan harga purata MSM direalisasikan dan kos MSM ke pintu kilang yang rendah.

Di segmen Huluan di bawah Sektor Perladangan, FGV merekodkan LBZT lebih rendah sebanyak RM63 juta pada S1 TK2021 berbanding LBZT sebanyak RM137 juta pada S1 TK2020. Ini disebabkan oleh margin tinggi dalam produk sawit. Sementara itu, pendapatan di bawah segmen ini meningkat kepada RM1.78 bilion pada S1 TK2021 berbanding RM1.35 bilion pada suku tahun yang sama.

Tambahan pula, pengeluaran buah tandan segar (BTS) meningkat kepada 0.74 juta MT bagi suku tahun dikaji berbanding 0.71 juta MT pada suku tahun yang sama, sementara hasil BTS meningkat kepada 2.93 MT/ha berbanding 2.81 MT/ha yang turut menyaksikan peningkatan y-o-y kedua-duanya sebanyak 4 peratus. Ini disumbangkan oleh pembaikan dalam pemulihan tanaman di samping buah matang dan pengurangan kawasan pokok sawit tua.

Namun begitu, pengeluaran MSM sedikit merosot sebanyak 2 peratus y-o-y kepada 0.505 juta MT berbanding 0.514 juta MT pada suku tahun terakhir yang sama ekoran penurunan BTS siap diproses, terutamanya daripada pihak luar. Kadar perahan minyak (OER) bagi suku tahun dikaji turut merosot kepada 20.05 peratus berbanding 20.10 peratus pada tahun sebelumnya kesan kualiti BTS siap diproses yang rendah akibat hujan lebat.

“Perlu diberi perhatian bahawa dua pertiga sumber BTS FGV dibekalkan oleh pihak luar jika dibandingkan dengan syarikat perladangan lain yang hanya membekalkan kurang dari 5 peratus BTS luar. Ini menunjukkan keunikan cabaran yang dihadapi oleh FGV terutamanya apabila harga meningkat pada bulan semasa namun menurun pada bulan seterusnya. Kekurangan pekerja ladang migran dan hujan lebat turut mempengaruhi keseluruhan prestasi perladangan bagi tempoh masa yang dikaji,” kata Azman Ahmad.

Kesan penurunan kos ladang, kos MSM ke pintu kilang merosot dengan ketara sebanyak 9 peratus y-o-y kepada RM2,015 setiap MT berbanding RM2,212 setiap MT. Sementara itu, faktor penggunaan (UF) sedikit merosot sebanyak 1 peratus y-o-y kepada 50.17 peratus dari 50.45 peratus ekoran volum tanaman pihak ketiga yang rendah.

Segmen Hiliran Kumpulan di bawah Sektor Perladangan pula mencatatkan PBZT sebanyak RM16 juta pada S1 TK2021 berbanding RM10 juta pada tahun sebelumnya. Pembaikan ini hasil dari margin lebih tinggi ke atas jualan minyak isirung sawit mentah (CPKO) di samping keuntungan lebih tinggi dalam perniagaan usaha sama.  

Jualan produk pengguna FGV juga meningkat sebanyak 18 peratus y-o-y kepada 91,138 MT berbanding 77,487 MT yang turut disumbangkan oleh kenaikan volum jualan di segmen pukal, terutamanya peningkatan pasaran eksport. Sementara itu, segmen ini turut merekodkan penurunan volum jualan biodiesel sebanyak 33 peratus y-o-y kepada 12,384 MT berbanding 18,503 MT yang disebabkan oleh kelemahan permintaan dalam mandat palm methyl ester (PME) oleh syarikat petroleum yang terkesan oleh wabak COVID-19 dan Kawalan Perintah Pergerakan (PKP) 2.0.

Selain itu, segmen Penyelidikan & Pembangunan (R&D) dan Baja di bawah Sektor Perladangan FGV merekodkan LBZT lebih rendah sebanyak RM4 juta bagi tempoh masa yang dikaji berbanding RM20 juta LBZT pada tahun sebelumnya yang disumbangkan oleh volum jualan tinggi dalam perniagaan produk baja dan biji benih.

Sektor Gula, anak syarikat milikan penuh FGV sebanyak 51 peratus, MSM Malaysia Holdings Berhad (MSM) mengekalkan momentum dan mencatatkan keputusan positif kedua bagi suku tahun sama berturut-turut. Sektor berkenaan merekodkan PBZT RM51 juta bagi suku tahun dikaji yang menyaksikan pembaikan ketara dalam LBZT tahun sebelumnya sebanyak RM28 juta. Pendapatan sektor juga meningkat kepada RM515 juta pada S1 TK2021 berbanding RM513 juta pada suku tahun sama sebelumnya.

Sektor Logistik FGV mencatatkan peningkatan PBZT sebanyak RM16 juta berbanding RM15 juta pada suku tahun sama sebelumnya. Pembaikan ini disokong oleh peningkatan caj pengangkutan di samping kenaikan tinggi dalam kadar tan dibawa masing-masing sebanyak 5 peratus dan 9 peratus.

Melangkah Ke Hadapan

Pada hujung April lepas, dua anak syarikat FGV, MSM dan FGV Integrated Farming Holdings Sdn. Bhd. (FGVIF) telah memeterai lembaran terma pelupusan dan pemerolehan 100 peratus kepentingan anak syarikat milik penuh MSM, MSM Perlis Sdn Bhd (MSM Perlis).

MSM Perlis memegang 11 bidang tanah pertanian dan perindustrian yang telah diperuntukkan untuk pembangunan Lembah Agro FGV Chuping (FCAV) di Perlis oleh FGVIF, yang terdiri daripada aktiviti perladangan tanaman kontan bersepadu bernilai tinggi dan perniagaan penternakan tenusu yang semakin berkembang.

Pembangunan Fasa 1 Perladangan Tanaman Kontan Bernilai Tinggi Bersepadu menumpukan penanaman Nanas MD2 di Lembah Agro Chuping yang dilaksanakan pada Mei 2021. Pembangunan keseluruhan seluas 1,200 hektar ini dijangka siap sepenuhnya dalam tempoh lima tahun dengan majoriti pembangunan fizikal akan dilaksanakan pada tahun 2021 dan 2022.

“Saya juga dengan sukacita ingin memaklumkan bahawa pembangunan di bawah Sektor Pertanian BersepaduFGV kini sedang dijalankan. Kami sedang meneliti untuk mewujudkan lebih banyak produk hiliran dan bernilai tinggi seperti minuman dan produk-produk makanan berasaskan nanas, pisang dan lain-lain tanaman di bawah jenama Ladang’57. Sebagai tambahan, pelbagai jenis beras lebih sihat di samping perkhidmatan produk susu Bright Cow juga disasarkan untuk memasuki pasaran pada tahun ini,” kata Azman Ahmad.

“FGV menjangkakan harga MSM kekal tinggi namun suasana operasi di Sektor Perladangan akan kekal mencabar kesan daripada wabak COVID-19 dan kesukaran mendapatkan buruh. Perniagaan Gula pula kekal optimis terhadap pelan pemulihan dan mampu mencapai pertumbuhan mampan dengan fokus tambahan terhadap eksport. Penggunaan gula domestik pula dijangka kekal kukuh kesan Perintah Kawalan Pergerakan. Sementara itu, perniagaan Logistik pula akan meneruskan strategi bagi menambahbaik volum jualan, margin dan kecekapan operasi,” kata Azman Ahmad.