KUALA LUMPUR: FGV Holdings Bhd
's plantations division has been a key driver of its financial performance in the current financial year, with improvements in fresh fruit bunch (FFB) production and yield.
"Despite challenges in some segments, our strategic focus on optimising operations and increasing efficiency is paying off, and I am confident that we are on track to close the year on a strong note," said group CEO Fakhrunniam Othman in a statement.
In the third quarter ended Sept 30, 2024, FGV recorded a net profit of RM87.16mil, up from RM31.98mil in the year-ago quarter, boosting earnings per share to 2.39 sen from 0.88 sen previously.
The group reported revenue of RM6.18bil, compared to RM4.91bil in the comparative quarter.
Over the three cumulative quarters, FGV recorded a net profit of RM160.05mil compared to RM31.18mil in the same period in 2023, while revenue grew to RM16.24bil from RM13.99bil in 9MFY23.
According to FGV, its plantations division posted a profit of RM96mil in 3QFY24, which was a significant jump from RM680,000 in the same quarter in 2023, due to the increase in FFB production.
Additionally, the division’s profit was also driven by a 20% drop in the CPO cost ex-mill to RM2,231 per tonne, contributed by the lower estate and processing costs.
Meanwhile, FGV said CPO prices remain elevated, bolstered by rising crude oil prices and concerns over reduced output from Malaysia and Indonesia in the fourth quarter of the year.
Against this backdrop, the plantation division is intensifying its yield enhancement efforts, focusing on efficient crop recovery, loose fruit collection, and estate mechanisation.
“While we remain vigilant of potential challenges such as market volatility and global economic pressures, I am confident that with our strong operational base, strategic initiatives, and dedicated team, we will achieve our objectives for the remainder of the year and beyond,” Fakhrunniam said.
