FGV Holdings Bhd group chief executive officer Fakhrunniam Othman (left) and group chief financial officer Datuk Mohd Hairul Abdul Hamid at a press conference on Friday. FGV's net profit for the three months ended Dec 31, 2024 leapt to RM116.21 million, from RM70.44 million in the same period a year earlier. (Photo by Sam Fong/The Edge)
KUALA LUMPUR (Feb 27): FGV Holdings Bhd (KL:FGV) posted a 65% year-on-year (y-o-y) rise in net profit for the fourth quarter on higher fresh fruit bunches (FFB) prices as well as its sugar division’s higher capacity utilisation.
Net profit for the three months ended Dec 31, 2024 (4QFY2024) leapt to RM116.21 million from RM70.44 million in the same period a year earlier, according to the group's bourse filing on Friday.
Revenue for the quarter rose 10.4% to RM5.92 billion in 4QFY2024 versus RM5.36 billion in 4QFY2023.
FGV announced a final dividend of five sen per share for the financial year ended Dec 31, 2024 (FY2024), which translates to a payout of RM182.41 million. It paid out three sen per share in FY2023.
The group’s plantation division’s operating profit more than doubled y-o-y to RM126.3 million in 4QFY2024 on a 2% rise in FFB production coupled with a 24.9% increase in FFB price to RM932 per tonne. Additionally, estate operational costs were down 10%, FGV said, without elaborating.
As for the sugar division, it saw a 78.3% y-o-y jump in operating profit to RM96.76 million despite lower average selling price, carried by higher sales volume and higher capacity utilisation.
Contributions from the group’s other divisions however fell.
The oils and fats division experienced a 78.1% y-o-y decline in operating profit to RM16.27 million on lower margins in the bulk commodities segment, foreign exchange losses and a drop in crude palm oil (CPO) and processed palm oil delivered volume.
The logistics and support division posted a 13.3% y-o-y drop in operating profit to RM40.37 million on lower profit from the IT segment.
For FY2024, FGV’s net profit more than doubled to RM276.25 million as compared to RM101.62 million in FY2023, as full-year revenue rose 14.4% to RM22.16 billion versus RM19.36 billion a year earlier.
Looking to FY2025, FGV said the group expects CPO prices to remain elevated in the first half, driven by seasonally lower FFB output, Indonesia’s biodiesel mandate and tighter vegetable oil supplies.
“FGV’s plantation division aims to achieve yield and oil extraction rate targets, the sugar division is strengthening its market presence while engaging with the government on a sustainable pricing mechanism, and the logistics and support division focuses on capacity enhancement, cost optimisation and network expansion,” the group said.
Overall, FGV said it anticipates to achieve a y-o-y improvement in its financial performance in FY2025.
At Friday's noon break, shares in FGV were two sen or 1.72% lower at RM1.14, valuing the group at RM4.16 billion.
- Earthquake of magnitude 7 strikes Tonga islands, German research centre says
- China's biggest state banks to raise US$71.6b to boost capital
- Japan to give crypto assets legal status as financial products, Nikkei says
- Unity must be preserved with utmost care, says King, Queen in Aidilfitri message
- PM urges Muslims to uphold mutual respect, compassion in Aidilfitri message
- The perfect place to embrace it all awaits you.
- China's biggest state banks to raise US$71.6b to boost capital
- Myanmar quake death toll hits 1,700 as aid scramble intensifies
- Japan to give crypto assets legal status as financial products, Nikkei says
- Toshiba elevators and escalators: Safety, technology, quality