Whistleblowing
Invitation To Tender KUALA LUMPUR, 29 November – FGV Holdings Berhad (FGV) registered a Profit Before Tax (PBT) of RM83 million in the third quarter ended 30 September 2023 (Q3 FY2023).
The Group reported an Operating Profit before fair value changes in LLA and impairment of RM207 million while revenue recorded at RM4.91 billion on the back of a challenging business environment, primarily stemming from the margin squeeze in the Plantation Sector resulting from lower crude palm oil (CPO) price and higher input cost.
The current quarter witnessed a 15 percent reduction in the total amount of fresh fruit bunches (FFB) received at 3.36 million MT, compared to the same period last year at 3.95 million MT which is in line with the lower FFB production nationwide. The Group received lower FFB from FELDA settlers by 22 percent at 1.36 million MT and third parties lower by 12 percent at 1.00 million MT.
Nevertheless, the financial performance was partially offset by improvement reported in the Logistics and Others Sector and narrow loss posted in the Sugar Sector.
“FGV is challenged differently than other major plantation companies. We are the biggest off-taker of smallholders’ FFB in Malaysia by procuring FFB from FELDA settlers and independent smallholders at a price set by the Malaysian Palm Oil Board (MPOB), contributing to 70 percent of our total processed FFB. Our commitment extends beyond business as we continue to fulfil our social obligations to support local communities and contribute to nation-building.
Despite the current challenges, FGV maintains a positive outlook by strategically navigating through this complex business environment, flexing forward to deliver sustainable value to meet the expectations of our stakeholders,” said Dato’ Nazrul Mansor, Group Chief Executive Officer of FGV.
Plantation Sector
The Plantation Sector recorded a profit of RM111 million. The sector continues to face challenges, including a lower average CPO price realised at RM3,879 per MT, a 12 percent decrease in CPO sales volume, and a higher CPO production costs ex-mill by 25 percent due to higher upkeep & maintenance, manuring and labour costs.
Operationally, FFB production registered a lower volume to 1.00 million MT and yield reducing to 3.73 MT per hectare, impacted by the lower average bunch weight resulting from lower fertiliser application over several years, a consequence of labour shortages and the Movement Control Order (MCO) during the COVID-19 pandemic.
Nevertheless, the Sector achieved an improved oil extraction rate (OER) of 20.89 percent, an increase from 20.36 percent registered in the same period last year.
In the downstream business, a margin squeeze was experienced due to higher refining and processing costs, combined with a decline in crude palm kernel oil (CPKO) and oleochemical sales volume. The sector was also impacted by lower sales volume for bulk and repacker segments due to CPO price volatility and intense price competition from local and regional brands.
Logistic and Others Sector
The Logistic and Others Sector continued to be a steadfast contributor to the Group’s overall performance. The Sector reported a marginally increased profit of RM41.7 million, surpassing the RM38.1 million recorded in the corresponding quarter of the previous year. This positive growth is primarily attributed to improvement in the Logistic division, in tandem with an improved handling rate in the bulking segment.
Sugar Sector
The Sugar Sector is narrowing its losses to RM32 million, marking an improvement from the RM71 million loss in the corresponding quarter of the previous year. The lower loss is driven by improved margins from industry and export segments, lower freight costs, and better capacity utilisation.
Going Forward
In its continuous pursuit of sustainability and in addressing the Withhold Release Order (WRO) by the U.S. Customs and Border Protection (USCBP), FGV has successfully completed the third phase of its recruitment fees reimbursement on 15th September 2023. A total of RM72.2 million has been disbursed to 19,673 FGV migrant workers. The reimbursement was paid in three tranches; March, June and September 2023 respectively, which are currently being verified by ELEVATE as the independent firm appointed by FGV.
In addition to verifying the reimbursements, ELEVATE will also verify the implementation of other aspects of FGV’s remediation plan. Such verification is expected to take place in the first quarter of 2024, following which FGV will make its submission to the USCBP in June 2024.
FGV has also implemented various initiatives to enhance the welfare and well-being of its migrant workers. FGV has actively participated in various impactful initiatives throughout the year and has invested approximately RM227 million from January to September 2023 which include the enhancement of migrant workers’ facilities, independent smallholders’ engagement and sustainability certifications.
The Group’s dedication to sustainability remains steadfast, as it continues to prioritise existing initiatives on climate agenda, human rights, diversity, and smallholders’ engagement. These initiatives align with and reinforce the Group Sustainability Policy (GSP), underscoring its dedication to comprehensive sustainability practices across all facets of its operations.
ENDS
KUALA LUMPUR, 29 November – FGV Holdings Berhad (FGV) mencatatkan Keuntungan Sebelum Cukai (PBT) sebanyak RM83 juta bagi suku ketiga berakhir 30 September 2023 (S3 TK2023).
Kumpulan melaporkan Keuntungan Operasi sebanyak RM207 juta, manakala hasil mencatatkan RM4.91 bilion di sebalik persekitaran perniagaan yang mencabar, terutamanya margin keuntungan menipis daripada Sektor Perladangan dipengaruhi harga minyak sawit mentah (MSM) yang lebih rendah dan kos input yang lebih tinggi.
Suku semasa menyaksikan pengurangan sebanyak 15 peratus bagi jumlah penerimaan buah tandan segar (BTS) iaitu 3.36 juta MT berbanding tempoh sama tahun lalu yang direkodkan sebanyak 3.95 juta MT. Pengurangan ini sejajar dengan jumlah pengeluaran BTS semasa yang lebih rendah di seluruh negara. Kumpulan menerima BTS yang lebih rendah daripada peneroka FELDA sebanyak 22 peratus pada 1.36 juta MT dan pihak ketiga sebanyak 12 peratus pada 1.00 juta MT.
Walaubagaimanapun, prestasi positif kewangan syarikat disokong peningkatan yang dilaporkan oleh Sektor Logistik dan Lain-lain serta pengurangan kerugian yang dicatatkan oleh Sektor Gula.
“Cabaran perniagaan FGV adalah berbeza berbanding syarikat perladangan utama yang lain. Kami adalah pembeli terbesar BTS pekebun kecil di Malaysia dengan memperoleh BTS daripada peneroka FELDA dan pekebun kecil bebas pada harga yang ditetapkan oleh Lembaga Minyak Sawit Malaysia (MPOB), yang menyumbang 70 peratus daripada jumlah BTS yang kami proses. Komitmen kami melangkaui perniagaan kerana kami akan terus memenuhi tanggungjawab sosial kami untuk menyokong komuniti setempat sekaligus menyumbang kepada pembangunan negara.
Di sebalik cabaran semasa, FGV kekal optimis dengan mendepani cabaran kompleks perniagaan secara strategik, terus memacu ke hadapan untuk memberikan nilai yang berterusan bagi memenuhi jangkaan pihak berkepentingan kami,” kata Dato’ Nazrul Mansor, Ketua Pegawai Eksekutif Kumpulan FGV.
Sektor Perladangan
Sektor Perladangan mencatatkan keuntungan sebanyak RM111 juta. Sektor ini berdepan pelbagai cabaran termasuk harga purata MSM yang rendah sebanyak RM3,879 per MT, penurunan 12 peratus dalam volum jualan MSM, dan kenaikan kos CPO ex-mill sebanyak 25 peratus yang dipengaruhi peningkatan kos pembajaan, penyelenggaraan dan tenaga kerja.
Secara operasi, pengeluaran MSM mencatatkan volum yang lebih rendah iaitu 1.00 juta MT dan pengeluaran hasil berkurangan kepada 3.72 MT per hektar, dipengaruhi purata berat BTS yang lebih rendah akibat pengurangan pembajaan dalam beberapa tahun lalu berikutan kekurangan pekerja buruh dan Perintah Kawalan Pergerakan (PKP) semasa pandemik COVID-19.
Walaubagaimanapun, Sektor ini berjaya merekodkan peningkatan kadar perahan minyak (OER) kepada 20.89 peratus berbanding 20.36 peratus pada tempoh sama tahun lalu.
Dalam perniagaan hiliran, margin dicatatkan berkurangan disebabkan kos penapisan dan pemprosesan yang lebih tinggi serta penurunan jumlah jualan minyak isirong sawit mentah (CPKO) dan oleokimia. Sektor ini turut dipengaruhi penurunan volum jualan bagi segmen pukal dan pembungkusan disebabkan turun naik harga MSM dan persaingan harga yang sengit daripada jenama tempatan dan luar.
Sektor Logistik dan Lain-lain
Sektor Logistik dan Lain-lain terus menjadi penyumbang utama kepada prestasi keseluruhan Kumpulan. Sektor ini melaporkan peningkatan keuntungan sebanyak RM41.7 juta, mengatasi RM38.1 juta yang dicatatkan pada suku yang sama tahun sebelumnya. Pertumbuhan positif ini disebabkan oleh peningkatan dalam bahagian Logistik, seiring dengan peningkatan kadar pengedalian dalam segmen pukal.
Sektor Gula
Sektor Gula mencatatkan pengurangan kerugian kepada RM32 juta, menandakan penambahbaikan daripada RM71 juta kerugian yang dicatatkan pada suku sama tahun sebelumnya. Kerugian yang lebih rendah ini didorong oleh peningkatan margin daripada segmen Industri dan Eksport, kos pengangkutan yang lebih rendah dan penggunaan kapasiti yeng lebih baik.
Maju Ke Hadapan
Dalam usaha berterusan yang menyokong usaha –usaha kelestarian dan dalam menangani penggantungan Perintah Pelepasan Penahanan (WRO) yang dikeluarkan oleh Jabatan Kastam dan Perlindungan Sempadan Amerika Syarikat (USCBP), FGV telah berjaya menyelesaikan fasa ketiga pembayaran balik yuran pengambilan pekerja pada 15 September 2023. Sejumlah RM72.2 juta telah diagihkan kepada 19,673 pekerja migran. Pembayaran ini dibuat dalam tiga peringkat; pada bulan Mac, Jun dan September, yang sedang disahkan oleh ELEVATE, firma pengauditan bebas yang dilantik FGV.
Selain pembayaran balik yuran, ELEVATE juga akan mengesahkan pelaksanaan aspek lain pelan pemulihan FGV. Pengesahan berkenaan dijangka selesai pada suku pertama 2024 dan laporan akan diserahkan kepada USCBP pada Jun 2024.
FGV turut menjalankan pelbagai usaha untuk meningkatkan kebajikan dan kesejahteraan pekerja migrannya. Pelbagai inisiatif yang memberi impak dilakukan secara aktif dan kira-kira RM227 juta telah dilaburkan dari Januari hingga September 2023 untuk inisiatif seperti penambahbaikan kemudahan pekerja migran, penglibatan pekebun kecil bebas dan pensijilan kelestarian.
Dedikasi Kumpulan terhadap kelestarian kekal utuh dan akan terus menjalankan inisiatif sedia ada Kumpulan seperti agenda iklim, hak asasi manusia, kepelbagaian dan pekebun kecil. Inisiatif ini selaras dengan Dasar Kelestarian Kumpulan (GSP) yang menggariskan komitmen terhadap amalan kelestarian di seluruh operasinya.
TAMAT