FGV Holdings Berhad (FGV) Profit Before Tax (PBT) increased by 60% to RM417 million for the financial year ended 31 December 2017 (FY2017) compared to RM260 million recorded in FY2016. This improved result is mainly attributed to a strong performance from Plantation and Logistics & Others (LO) Sectors
The Plantation Sector registered a significant improvement with a profit of RM554 million from RM234 million in the previous year on the back of higher FFB production, better CPO sales margins and stronger performance from JV companies
“The Plantation Sector registered a significant improvement with a profit of RM554 million from RM234 million in the previous year on the back of higher FFB production, better CPO sales margins and stronger performance from JV companies,” said Group President and Chief Executive Officer, Dato’ Zakaria Arshad.
FGV’s Profit After Tax and Minority Interest (PATAMI) jumped to RM144 million compared to RM31 million while revenue declined slightly by 2 percent to RM16.975 billion in FY2017 compared to the previous year.
FGV’s CPO production increased by 12% to 2.99 million MT in line with the growth in FFB production from 3.91 million MT in FY2016 to 4.26 million MT in FY2017, while our average age profile improved from 14.9 years to 14.5 years.
The LO Sector recorded a higher profit of RM45 million compared to RM8 million in previous year mainly due to higher throughput in our bulking business, and increased tonnage carried by the transport operations in tandem with the increase in CPO production volume.
Meanwhile, FGV’s Sugar Sector posted a smaller profit in 2017 due to higher international raw sugar price and weakened Ringgit compared to the previous year.
“We increased our focus on the plantation business last year through our strategic transformation plan and the results have been encouraging. We are confident the momentum will continue this