FGV noted the remediation plan aims to close identified gaps in its labour practices to align its operation with internationally recognised ethical labour standards.
KUALA LUMPUR: FGV Holdings Bhd
returned to profit in the second quarter ended June 30, 2024 (2Q FY2024), chalking a net profit of RM86.37 million compared with a net loss of RM12.89 million in the same quarter last year.
Revenue rose 23 per cent to RM5.51 billion from RM4.49 billion, driven by a higher average realised crude palm oil (CPO) price of RM4,103 per tonne and increased CPO sales volume, it said in a filing with Bursa Malaysia.
For the first half (1H) of 2024, FGV posted a net profit of RM72.88 million, a significant improvement from the net loss of RM805,000 recorded in the same period last year.
Revenue also increased to RM10.06 billion, up from RM9.08 billion in 1H FY2023.
FGV's plantation division recorded a profit of RM100.55 million in the quarter, compared with a loss of RM61.64 million a year earlier, driven by a 23 per cent rise in fresh fruit bunch (FFB) production to 0.96 million metric tonnes from 0.78 million metric tonnes in the same period last year.
This resulted in a higher yield of 3.76 MT per hectare, up from 2.91 metric tonnes per hectare in the corresponding quarter of the previous year.
The logistics and support division reported a profit of RM37.51 million, up from RM23.22 million in the same quarter last year, supported by increased tonnage and improved handling rates in both transport and bulking operations.
However, the oils and fats division posted a lower profit of RM67.53 million, compared with RM76.34 million in 2Q FY2023, due to reduced margins in the bulk commodity segment, despite higher sales volumes.
The sugar division reported a wider loss of RM30.35 million, compared with a loss of RM13.75 million in the same quarter last year.
"Despite higher revenue from increased average selling prices and incentives for certain packed sugar sold in the domestic market, losses were driven by high input costs, mainly for raw sugar and freight, as well as the weakening of ringgit, despite improved capacity utilisation," it added.
Looking ahead, FGV said it will continue to prioritise yield enhancement initiatives in its plantation operations by closely monitoring crop harvesting processes and expanding mechanisation for more efficient FFB evacuation.
The group also noted that its sugar division remains cautious due to rising geopolitical tensions, which could increase input costs and impact financial performance.
Additionally, FGV said its logistics and support division aims to drive growth through strategic collaborations in logistics and technology, focusing on expansion and digitalisation. - Bernama
