FGV’s 4Q earnings soar 129% to RM498.7m

FGV’s 4Q earnings soar 129% to RM498.7m
Business & Markets 2014
Written by Wei Lynn Tang of theedgemalaysia.com
Thursday, 27 February 2014 09:59

KUALA LUMPUR: Felda Global Ventures Holdings Bhd’s (FGV) net profit soared 129% to RM498.7 million for its fourth quarter ended Dec 31 of financial year 2013 (FY13), from RM217.7 million in the previous corresponding quarter. Revenue, however, dipped 4.8% to RM3.7 billion.


For its full FY13, net profit rose 21.7% to RM981 million despite a 2.5% drop in revenue to RM12.6 billion.

“The group’s results were buoyed by a fair value gain of RM328.3 million arising from the acquisition of Felda Holdings Bhd (FHB) and a gain of RM494.5 million arising from fair value changes in the land lease agreement liability,” it said a filing with Bursa Malaysia yesterday.

FGV announced a final dividend of 10 sen per share, amounting to RM364.8 million. Together with an interim dividend of six sen paid in December 2013, the total dividend for FY13 amounts to 16 sen per share, or a payout of RM583.7 million.

FGV said its plantation segment’s profit before tax (PBT) fell 48.3% to RM686.87 million last year, compared with RM1.3 billion in 2012, due to a lower average crude palm oil (CPO) realised price of RM2,333 per tonne against RM2,843 per tonne in 2012.

Fresh fruit bunch (FFB) average realised price was lower at RM448 per tonne compared with RM541 per tonne in the previous year. However, the group’s FFB production of 5.05 million tonnes was 2.9% higher in 2013. It achieved an FFB yield of 19.59 tonnes per hectare, leading to a full-year CPO production of 3.21 million tonnes.

The downstream segment recorded a further loss before tax of RM45.16 million, compared with a loss of RM12.04 million in FY12, due to negative margin achieved from the group’s local downstream activities.

The manufacturing, logistics and others segment’s PBT declined 45.6% due to a decrease in R&D income and lower fertiliser margin as a result of lower average selling prices and lower sales volume of compound fertilisers.


Mohd Emir: We are pleased with the results achieved for the quarter and the year under review.
The sugar segment recorded a 24.4% growth in PBT to RM388.8 million for the year under review, on the back of higher volume as well as lower processing and purchasing costs of refined sugar.

“We are pleased with the results achieved for the quarter and the year under review. Despite the challenging environment and pressures on CPO prices, we are glad to have delivered a final bottom line that was a significant improvement on a year-on-year basis,” said group president and chief executive officer Mohd Emir Mavani Abdullah.

He said FGV will strive to manage costs and its internal key performance index to improve productivity and efficiency in 2014. “Building on our strategic growth plans, we are firmly committed to our mandate of strengthening our prospects, and in line with this, we are exploring new brownfields to moderate the loss of income from ongoing replanting efforts and add value to our plantation segment,” he said.


This article first appeared in The Edge Financial Daily, on February 27, 2014.