KUALA LUMPUR, Feb 27 — FGV Holdings Bhd’s net profit rose to RM1.32 billion in the financial year ended Dec 31, 2022 (FY2022) from RM1.17 billion in the previous year, attributed to higher average crude palm oil (CPO) prices and better contribution from its logistics business.
Its revenue surged to RM25.56 billion in 2022 compared with RM19.57 billion, the plantation group said in a filing with Bursa Malaysia today.
FGV said profit in the plantation division jumped to RM2.1 billion for FY2022 from RM1.6 billion recorded in the previous financial year, mainly attributable to the higher average CPO price of RM4,832 per tonne against RM3,671 per tonne registered in the previous financial year, coupled with higher sales volume by 19 per cent.
“The better performance was also contributed by the improved margin in the downstream and fertiliser businesses and boosted by share of profit from joint ventures amounting from RM17.26 million to RM106.08 million in the current financial year,” it said.
However, profit for this division was partially brought down by a higher fair value charge on the land lease agreement of RM352.87 million compared with RM3.98 million registered in the previous year, it said.
FGV said fresh fruit bunches production increased marginally to 3.99 million tonnes from 3.98 million tonnes, thus leading to a higher yield of 14.57 tonnes per hectare.
As for the logistics division, profit increased by 31 per cent year-on-year (y-o-y) attributed to the higher throughput and handling rate, it said.
In the final quarter, FGV recorded a lower net profit of RM337.71 million against RM465.09 million in the same quarter of 2021, while revenue slipped 1.0 per cent to RM6.1 billion from RM6.17 billion previously.
In a statement, the group said its operating profit jumped 27 per cent y-o-y to RM2.33 billion during FY2022 — the highest since its listing in 2012 — on the back of an increase in palm products’ margins following the higher average CPO price realised by 32 per cent, coupled with higher throughput and tonnage carried by the logistics sector.
Group chief executive officer Datuk Nazrul Mansor said that aligned with FGV’s “no recruitment fees” policy, the group will reimburse its current and former foreign workers who were employed after June 27, 2019, and had to pay recruitment fees to agents or other third parties in their countries of origin.
“The payment to our current 23,333 foreign workers amounting to RM81.64 million will be made in three tranches between March and September 2023.
“Additionally, FGV has created a sinking fund amounting to RM30 million to reimburse former workers who paid recruitment fees during their employment with FGV but are no longer employed by the company,” he said.
The group has announced a final dividend payment of 11 sen per share, translating to a dividend payout of RM401.30 million.
It declared a total dividend payment of 15 sen per share for FY2022. — Bernama
