KUALA LUMPUR, May 30 ― FGV Holdings Bhd’s net profit for the first quarter of financial year 2023 (1Q FY2023) declined to RM12.09 million from RM369.24 million in the same quarter last year.

Revenue was also lower at RM4.59 billion from RM5.85 billion previously, it said in a filing with Bursa Malaysia, today.

FGV said its profit before zakat and taxation decreased to RM59.86 million for the current quarter from RM501.06 million in the corresponding quarter last year as the group registered lower average crude palm oil (CPO) price realised and incurred losses in the sugar sector.

“The lower profit was partially mitigated by the improvement in the logistics sector in the current quarter,” it said.

For the plantation sector, the profit was lower to RM61.89 million in 1Q FY2023 from RM517.87 million in 1Q FY2022 mainly attributable to lower average CPO price realised of RM3,988 per tonne compared to RM5,058 per tonne in the previous corresponding quarter despite higher CPO sales volume in the current quarter by 31 per cent.

The sugar sector reported a higher loss of RM31.73 million compared to RM30.78 million in the corresponding quarter of the previous year mainly attributed to high input cost and the weakening of the ringgit coupled with lower sales volume despite an increase in overall average selling price.

However, the logistics and others sector reported a higher profit in the current quarter of RM37.64 million from RM21.92 million previously attributable to higher handling rate and increase in tonnage carried while the others sector reported an improvement mainly due to higher income recognised in the current quarter.

In a separate statement, group chief executive officer Datuk Nazrul Mansor said the group expects the upcoming months in 2023 to remain challenging and the company plans to capitalise on this starting momentum to push through the rest of the year.

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

“We anticipate improved fresh fruit bunches production this year with additional migrant workers which will positively impact our operational performance,” he said.

On 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,” he said. ― Bernama