FGV Q1 net loss narrows to RM35.42m

KUALA LUMPUR, May 28 — FGV Holdings Bhd’s net loss for the first quarter of its financial year ended December 31, 2021 (Q1 FY2021) narrowed to RM35.42 million from RM142.35 million loss registered in the same quarter last year.

Revenue rose 21.9 per cent to RM3.39 billion from RM2.78 billion a year ago.

In a filing to Bursa Malaysia today, the company said the increase in revenue was mainly due to improvement in all sectors and also boosted by higher crude palm oil (CPO) prices.

The plantation sector registered a lower loss of RM50.78 million in Q1 this year compared to RM147.27 million loss recorded last year, largely attributable to higher margin as a result of higher average CPO price realised of RM3,172 per tonne against RM2,669 per tonne last year, despite lower CPO sales volume by 16.3 per cent, FGV said.

In addition, the rubber and palm kernel divisions also reported better margins while share of profit from joint-ventures improved to RM2.17 million from RM7.49 million loss recorded in previous corresponding period.

FGV noted the improvement was partially offset by higher fair value land lease agreement charge of RM143.75 million against RM57.30 million in the previous year and fair value loss on derivatives of RM15.14 million compared to RM57.39 million gain in the previous financial period.

For the sugar sector, FGV said it registered a profit of RM50.68 million compared to RM27.89 million loss in the previous financial period mainly attributable to improved margin achieved due to better capacity utilisation and lower finance cost.

The logistics and other sectors recorded an increase in profit to RM11.75 million from RM9.73 million in the previous financial year, it added. — Bernama