KUALA LUMPUR – FGV Holdings Bhd’s net profit went up to RM374.02 million in the second quarter ended June 2022 (Q2 FY2022) from RM338.82 million a year earlier amid strong performance from its plantation business.
Revenue soared 59% to RM7.43 billion from RM4.68 billion a year earlier due to a 31.4% growth in plantation revenue to RM620.82 million from a higher average realised crude palm oil price of RM5,254 per tonne recorded in the quarter under review compared with RM3,333 per tonne in Q2 FY2021, a filing with Bursa Malaysia said today.
The sector recognised a fair value charge on a land lease agreement of RM57.85 million compared to fair value gain of RM180.35 million in the corresponding quarter of the previous year.
Operationally, fresh fruit bunches production reduced to 960,000 tonnes from 1.06 million tonnes, while yield decreased to 3.50 tonnes per hectare in the current quarter, and the oil extraction rate was 20.63% higher from 20.16% previously.
Revenue from the logistics and others segment, however, dipped 30.4% to RM14.02 million due to impairment loss on receivables recognised of RM7.13 million, while the sugar business contracted 100% to RM23.88 million amid high input costs mainly for raw sugar, freight, natural gas and the weakening ringgit despite the increase in overall average selling price.
For the first half, net profit jumped to RM743.26 million from RM303.40 million a year ago, while revenue surged to RM13.28 billion from RM8.08 billion previously.
Based on its first half performance, group chief executive officer Datuk Mohd Nazrul Izam said FGV is on track to chart a growth trajectory and will remain cautiously optimistic towards achieving its 2022 targets.
The group declared an interim dividend of 4.0 sen per share for the quarter ended June 30, 2022, which translates to a total dividend payout of RM145.93 million. It is expected to be paid by September 29, 2022. – Bernama, August 30, 2022
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