1 month ago
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PETALING JAYA: FGV Holdings Bhd remained in black for a second straight quarter with a RM136.89 million net profit for the third quarter ended Sept 30, 2020 (Q3’20) compared with a net loss of RM262.41 million in the same quarter of the previous year, attributed to higher crude palm oil (CPO) prices and lower losses from its sugar business.
Its revenue for the period rose 12.4% to RM3.99 billion from RM3.55 billion previously.
For Q3’20, the CPO price averaged RM2,645 a tonne, an improvement over RM1,983 a tonne realised in 3Q’19.
For the nine-month period, the group posted a net profit of RM15.09 million, an improvement over a RM317.98 million net loss in the corresponding period of the previous year.
Revenue for the period stood at RM10.07 billion, a decline of 0.4% from RM10.1 billion previously.
According to the group’s Bursa filing, it anticipates CPO prices to remain strong until the end of the year, but the improvement in yield achieved to date is unlikely to be sustained due to weather uncertainties and partial lockdowns in Sabah.
It said the sugar business will continue to focus on strategies to improve operating efficiency and financial performance and that the board expects the overall business climate to remain uncertain and volatile.
FGV group CEO Datuk Haris Fadzilah Hassan said while CPO production is in line with national production, fresh fruit bunch (FFB) production continues to outpace national production attributed to improving crop recovery and higher mature areas.
For the quarter, FGV posted a 9% increase in FFB production to 1.35 million tonnes compared with 1.24 million tonnes previously.
Moving forward, the group aims to focus and grow its high value-add business activities in integrated farming and FMCG as part of its strategic plans.
The group CEO highlighted that its dairy business has shown growth potential as its farm in Linggi, a new fresh milk factory with a capacity of 30,000 litres a day, is scheduled for completion in the first half of 2021.
“The farm is also undergoing upgrading work which shall be finalised by mid-December 2020, prior to the delivery of a new batch of 132-heads of heifers from Australia,” he said.
In addition, the group has been granted a rice wholesale licence by the Agriculture and Food Industries Ministry in June this year and has subsequently commenced the planting of 28 hectares of fragrant rice in Sungai Leman, Selangor, and Seberang Perak, Perak. The crop is scheduled for harvest by January next year.
As for its animal feed business, the group expects to launch two new formulations in the fourth quarter.
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