30 May 2023

KUALA LUMPUR, 30 May – FGV Holdings Berhad (FGV) registered a Profit Before Tax (PBT) of RM60 million in the first quarter ended 31 March 2023 (Q1 FY2023).

The Group reported an Operating Profit before fair value changes in LLA and impairment of RM102 million for the period under review on the back of a challenging business environment, squeezed margins in the Plantation Sector and increased production costs in its Sugar Sector. Nevertheless, the Logistics Sector recorded higher profits because of improved tank rental income, premium oils and tonnage carried.

“Despite the subsiding surge in the price of crude palm oil (CPO), as well as other challenges faced by our Group, we are pleased to announce a profitable first quarter for the year 2023. However, the Group expects the upcoming months in 2023 to remain challenging and we plan to capitalise upon this starting momentum to push through the rest of the year and continuously meet the expectations of our stakeholders,” said Dato’ Nazrul Mansor, Group Chief Executive Officer of FGV.

FGV anticipate improved FFB production this year with additional migrant workers which will positively impact its operational performance. 

Plantation Sector

FGV recorded an Operating Profit of RM82 million in the Plantation Sector for the quarter. The Upstream Operations were impacted by lower palm product margins due to a 45 percent increase in CPO Ex-Mill cost to RM2,944 per metric tonne (MT) resulting from higher manuring, upkeep, maintenance, and labour costs.

Despite a shortage of skilled labour and adverse weather conditions in Johor, Sabah, and the East Coast region, FGV’s Upstream Operations have shown some resilience. Internal Fresh Fruit Bunches (FFB) production reported a marginal 1 percent decrease to 0.82 million MT. However, FFB yield experienced a slight increase to 3.04 MT/Ha due to expanded prime areas and an increased workforce for harvesting activities.

CPO production saw a significant 4 percent increase, reaching 0.59 million MT, in tandem with the higher FFB processed of 2.97 million MT. This growth also resulted in a 13 percent increase in the Group’s utilisation factor (UF) for the quarter. In terms of FFB processing, 0.80 million MT (27 percent) of FFB processed were produced internally, 1.28 million MT (43 percent) came from FELDA settlers, and 0.89 million MT (30 percent) were received from third parties.

However, unfavourable weather conditions and lower quality of FFB ripeness contributed to a 2 percent decrease in the total oil extraction rate (OER) for both internal and external Fresh Fruit Bunches (FFB), resulting in a rate of 19.81 percent for the quarter.

For the Downstream Operations, the Group achieved an Operating Profit of RM19 million during Q12023. Oils and fats sales volume increased by 3 percent, driven by higher intake from the Export and Repackers segment. Additionally, there was a notable 42 percent surge in biodiesel sales volume, reflecting increased demand following the nation’s economic recovery. Nevertheless, the oleochemical sales volume decreased by 19 percent due to lower demand for fatty acids across all market segments.

Logistics Sector

The Logistics Sector recorded a higher Operating Profit of RM32 million, a 19 percent rise compared to RM27 million in the previous corresponding quarter. This is attributable to the improved tank rental income, premium oils and tonnage carried which was derived from increased handling rates and higher tonnage carried. Bulking volume decreased by 2 percent due to lower throughput handled, while transport volume rose by 10 percent that contributed to higher tonnage carried.

Sugar Sector

Sugar Sector reported an operating loss of RM24 million on the back of year-on-year decrease in revenue of RM588 million from RM593 million previously due to reduced export sales volume to prioritise local sales demand. The Sector faces higher production cost driven by 5.2 percent higher foreign exchange and 65 percent increase in gas cost which resulted in higher refining cost.

Going Forward

CPO prices are expected to remain stable in the near term, ranging between RM3,800 per MT to RM4,000 per MT.

“We anticipate improved FFB production this year with additional migrant workers which will positively impact our operational performance. Furthermore, our palm age profile has improved, with an average age of 12.77 years and 39 percent of our plantation areas are classified as prime areas. Those factors will position us well for enhanced productivity and growth in the industry. However, we also remain cautious of adverse weather conditions that could impact our palm oil production, such as the El Nino weather pattern towards the end of the year.” Dato’ Nazrul added.

Dato’ Nazrul Mansor, Group Chief Executive Officer of FGV

Looking ahead for the Sugar Sector, the Group welcomes the government’s recent announcement permitting local sugar producers to manufacture pure white refined sugar. This expansion into a new product category will facilitate the introduction of a premium sugar offering, enabling the Sugar Sector to strengthen its competitive stance and secure long-term viability in the industry.

On the sustainability front, FGV has implemented various programmes to strengthen its labour practices, including aligning its policies and recruitment practices to international labour standards in efforts to uplift the Withhold Release Order (WRO) issued by the United States Customs and Border Protection (CBP).

One of the main standards adopted by the Group is the no recruitment fees policy for the hiring of its migrant workers. To compensate current migrant workers, nearly RM30 million was paid to approximately 20,000 workers on March 15 as part of the 1st phase, with subsequent phases scheduled for June and September this year. Furthermore, FGV is tracing its former migrant workers who were recruited on or after June 27th 2019 that have left the company and eligible for reimbursement of the recruitment fees they paid, reflecting its commitment to fair treatment and equitable compensation for all migrant workers to further align with FGV’s Sustainability Framework on the respecting human rights’ pillar.


KUALA LUMPUR, 30 Mei – FGV Holdings Berhad (FGV) mencatatkan Keuntungan Sebelum Cukai (PBT) sebanyak RM60 juta bagi suku pertama berakhir 31 Mac 2023 (Q1 FY2023).

Kumpulan melaporkan Keuntungan Operasi sebelum perubahan nilai saksama Perjanjian Pajakan Tanah (LLA) dan kemerosotan nilai, sebanyak RM102 juta meskipun berdepan dengan pelbagai cabaran seperti keadaan pasaran yang mencabar, margin keuntungan menipis bagi Sektor Peladangan, serta kos pengeluaran yang meningkat di Sektor Gula. Walau bagaimanpun, Sektor Logistik mencatatkan keuntungan yang lebih tinggi berbanding tahun lepas hasil daripada peningkatan pendapatan sewa tangka, minyak premium serta perkhidmatan angkutan.

“FGV berjaya mencatatkan keuntungan bagi suku pertama tahun 2023, meskipun berdepan dengan pelbagai cabaran seperti penurunan harga pasaran minyak sawit mentah (MSM). Walaupun FGV menjangka pelbagai cabaran akan ditempuhi sepanjang tahun 2023, kami akan terus cekal ke hadapan bagi memenuhi tanggungjawab kami kepada pemegang-pemegang berkepentingan kami,” kata Dato’ Nazrul Mansor, Ketua Pegawai Eksekutif Kumpulan FGV.

FGV menjangkakan pengeluaran TBS bertambah baik tahun ini dengan penambahan pekerja asing yang akan memberi kesan positif kepada prestasi operasinya. 


Sektor Perladangan

FGV mencatatkan Keuntungan Operasi sebanyak RM82 juta di Sektor Perladangan bagi suku ini. Operasi Huluan terkesan dengan margin produk sawit yang lebih rendah akibat kenaikan 45 peratus untuk kos CPO Ex-Mill kepada RM2,944 per Tan Metrik (MT) disebabkan kenaikan kos pembajaan, penyelenggaraan dan tenaga kerja.

Operasi Huluan FGV terus kukuh walaupun berhadapan dengan pelbagai cabaran seperti kekurangan tenaga kerja mahir serta cuaca buruk di Johor, Sabah dan wilayah Pantai Timur. Pengeluaran tandan buah segar (TBS) mencatatkan penurunan 1 peratus kepada 0.82 juta per MT. Walau bagaimanapun, hasil sawit mengalami sedikit kenaikan kepada 3.04 MT/Ha hasil daripada perluasan kawasan sawit matang serta peningkatan tenaga kerja bagi aktiviti penuaian.

Pengeluaran MSM meningkat sebanyak 4 peratus dan mencapai 0.59 MT, selari dengan peningkatan pengeluaran TBS sebanyak 2.97 juta MT. Peningkatan ini juga membawa kepada kenaikan 13 peratus bagi Faktor Penggunaan (UF) bagi suku ini. Bagi pemprosesan TBS, 0.80 juta MT (27 peratus) telah dihasilkan secara dalaman, manakala 1.28 juta MT (43 peratus) diperoleh daripada peneroka FELDA, dan 0.89 juta MT (30 peratus) diperoleh daripada pihak ketiga.

Walau bagaimanapun, cuaca buruk dan TBS kurang matang menyebabkan kadar jumlah perahan minyak (OER) yang diperoleh secara dalaman dan pihak luar mengalami penurunan sebanyak 2 peratus dan membawa kepada kadar 19.81 peratus bagi suku ini.

Bagi Operasi Hiliran, Kumpulan mencatatkan Keuntungan Operasi sebanyak RM19 juta bagi suku ini. Kadar penjualan minyak dan lelemak sawit mengalami peningkatan sebanyak 3 peratus, hasil daripada peningkatan permintaan daripada segmen Eksport dan Pembungkusan. Kadar penjualan biodiesel juga mengalami peningkatan sebanyak 42 peratus, hasil kenaikan permintaan dan pemulihan ekonomi negara. Walaubagaimanpun, volum jualan oleokimia menurun sebanyak 19 peratus akibat kekurangan permintaan untuk asid lelemak dari semua segmen pasaran.

Sektor Logistik

Sektor Logistik mencatatkan Keuntungan Operasi sebanyak RM32 juta, peningkatan sebanyak 19 peratus dibandingkan dengan RM27 juta bagi suku pertama tahun lepas. Ini disebabkan oleh peningkatan daripada pendapatan sewa tangka, minyak premium serta angkutan muatan. Volum pukal menurun sebanyak 2 peratus disebabkan hasil pengendalian pemprosesan yang lebih tinggi, manakala volum pengangkutan meningkat sebanyak 10 peratus dan menyumbang kepada peningkatan berat tan.

 Sektor Gula

Sektor Gula melaporkan kerugian RM24 juta berikutan penurunan hasil tahun ke tahun sebanyak RM588 juta daripada RM593 juta pada tahun sebelumnya, disebabkan pengurangan kadar jualan eksport untuk mengutamakan permintaan jualan tempatan. Sektor ini menghadapi kos pengeluaran yang lebih tinggi didorong oleh pertukaran asing sebanyak 5.2 peratus lebih tinggi dan peningkatan kos gas sebanyak 65 peratus yang mengakibatkan kos penapisan lebih tinggi.

Maju Ke Hadapan

Harga MSM dijangka akan kembali stabil dalam tempoh terdekat, iaitu antara RM3,800 per MT hingga RM4,000 per MT.

“Kami menjangkakan pengeluaran TBS bertambah baik tahun ini dengan penambahan pekerja asing yang akan memberi kesan positif kepada prestasi operasi FGV. Tambahan pula, profil umur sawit FGV kini lebih baik, dengan purata 12.77 tahun dengan 39 peratus kawasan ladang syarikat diklasifikasikan sebagai kawasan matang. Faktor-faktor ini akan meningkatkan produktiviti dan pertumbuhan FGV dalam industri. Bagaimanapun, kami mengambil langkah berjaga-jaga dengan mengambil kira keadaan cuaca buruk seperti El Nino yang dijangka melanda pada hujung tahun ini, yang boleh menjejaskan pengeluaran minyak sawit kami,” tambah Dato’ Nazrul.

Dato’ Nazrul Mansor, Ketua Pegawai Eksekutif Kumpulan FGV

Bagi Sektor Gula, FGV menyambut baik pengumuman yang dibuat oleh pihak kerajaan baru-baru ini yang membenarkan pemain tempatan untuk mengeluarkan gula putih bertapis jernih. Kategori produk baharu ini akan membantu memperkenalkan produk gula premium yang akan meningkatkan daya saing industri dan menjamin kelestarian industri gula tempatan.

Dari aspek Kelestarian, FGV telah melaksanakan pelbagai program bagi mengukuhkan amalan pengurusan tenaga kerja. Ini termasuk menyelaraskan dasar dan amalan pengambilan pekerja yang mematuhi piawaian buruh antarabangsa selaras dengan usaha meningkatkan Perintah Pelepasan Penahanan (WRO) yang dikeluarkan oleh Jabatan Kastam dan Perlindungan Sempadan Amerika Syarikat (USCBP).

Salah satu piawaian utama yang diterima pakai oleh Kumpulan ialah dasar Pengambilan Pekerja Asing Tanpa Yuran FGV. Pihak syarikat telah membuat bayaran pampasan sebanyak hampir RM30 juta kepada kira-kira 20,000 orang pekerja asing FGV pada 15 Mac yang lalu yang merupakan fasa pertama pembayaran. Fasa berikutnya dijadualkan pada Jun dan September tahun ini. Ketika ini, FGV sedang menjejaki bekas pekerja asing syarikat yang pernah membuat bayaran pengambilan kepada pihak ketiga. Ini mencerminkan komitmen FGV dalam mengamalkan layanan yang adil dan saksama untuk semua pekerja syarikat, selaras dengan tunjang Menghormati Hak Asasi Manusia yang termaktub di bawah  Rangka Kerja Kelestarian FGV.