MARKET DEVELOPMENT
FGV 9-Month Pre-tax Profit Slips To RM807 Million
FGV 9-Month Pre-tax Profit Slips To RM807 Million
28/11/2013 (Bernama) - Felda Global Ventures Holdings Bhd's (FGV) pre-tax profit for the nine months ended Sept 30, 2013, slipped to RM807.15 million from RM895.01 recorded in the same period last year.
Revenue declined to RM8.89 billion from RM9.02 billion previously.
President and chief executive officer Mohd Emir Mavani Abdullah said the nine-month result was weighed by the low commodity prices.
"Fortunately, our sugar and downstream businesses have performed significantly well for the period on a comparative year-on-year basis," he said in a statement Wednesday.
He said FGV is cognisant of the fact that cyclical conditions are part and parcel of the business landscape it operated in but the company is confident that the significant improvements in its operational efficiencies along with assertive growth strategy will augur well.
"In keeping with our commitment to improve future crop yield and extraction rates, we are glad to announce that we have, to date, cleared 91.9 per cent of the annual 15,000 hectares of land allocated for our replanting exercise.
"These areas will then be planted with high quality seed varieties," he said.
Mohd Emir said despite lower earnings for the period under review, FGV remained dedicated to its dividend policy and delivering value to shareholders, and has declared an interim dividend of six sen per share, which is equivalent to a total payout of RM218.89 million.
Going forward, he said the company has put in place strategic long-term initiatives to drive its growth strategy.
He said the company was encouraged by the approval received from the shareholders of Koperasi Permodalan Felda to acquire the remaining 51 per cent of Felda Holdings Bhd owned by the cooperative.
"With this acquisition, we are closer to completing our plantation value chain while benefitting from cost as well as value-added synergies," he said.
Mohd Emir said as part of FGV's growth strategy, the company is focused on expanding its plantation hectarage as well as milling capacity, in addition to the downstream capacity and supporting facilities.
The company also aimed to extend its distribution and logistics capabilities to reach out to more end users in its destination markets, he added.
Meanwhile, Mohd Emir said with the production for fresh fruit bunches reaching its cyclical peak in the coming months thus increasing crude palm oil (CPO) inventory levels and the robust long-term fundamentals of the sector, the company is positive on the outlook for the palm oil industry.
He said the expectation is for palm oil demand to grow, supported by strong primary demand for edible oils, increasing the need for substitution to palm oil, as well as alternative uses such as oleochemicals, specialty fats and biodiesel.
In this regard, he said the company is expected to benefit from the projected uptrend in CPO prices.
"Given our diversified and integrated businesses, as well as the dedication of our determined work force, I am confident that we will be able to achieve the targets set for the full financial year 2013," Mohd Emir said.
Revenue declined to RM8.89 billion from RM9.02 billion previously.
President and chief executive officer Mohd Emir Mavani Abdullah said the nine-month result was weighed by the low commodity prices.
"Fortunately, our sugar and downstream businesses have performed significantly well for the period on a comparative year-on-year basis," he said in a statement Wednesday.
He said FGV is cognisant of the fact that cyclical conditions are part and parcel of the business landscape it operated in but the company is confident that the significant improvements in its operational efficiencies along with assertive growth strategy will augur well.
"In keeping with our commitment to improve future crop yield and extraction rates, we are glad to announce that we have, to date, cleared 91.9 per cent of the annual 15,000 hectares of land allocated for our replanting exercise.
"These areas will then be planted with high quality seed varieties," he said.
Mohd Emir said despite lower earnings for the period under review, FGV remained dedicated to its dividend policy and delivering value to shareholders, and has declared an interim dividend of six sen per share, which is equivalent to a total payout of RM218.89 million.
Going forward, he said the company has put in place strategic long-term initiatives to drive its growth strategy.
He said the company was encouraged by the approval received from the shareholders of Koperasi Permodalan Felda to acquire the remaining 51 per cent of Felda Holdings Bhd owned by the cooperative.
"With this acquisition, we are closer to completing our plantation value chain while benefitting from cost as well as value-added synergies," he said.
Mohd Emir said as part of FGV's growth strategy, the company is focused on expanding its plantation hectarage as well as milling capacity, in addition to the downstream capacity and supporting facilities.
The company also aimed to extend its distribution and logistics capabilities to reach out to more end users in its destination markets, he added.
Meanwhile, Mohd Emir said with the production for fresh fruit bunches reaching its cyclical peak in the coming months thus increasing crude palm oil (CPO) inventory levels and the robust long-term fundamentals of the sector, the company is positive on the outlook for the palm oil industry.
He said the expectation is for palm oil demand to grow, supported by strong primary demand for edible oils, increasing the need for substitution to palm oil, as well as alternative uses such as oleochemicals, specialty fats and biodiesel.
In this regard, he said the company is expected to benefit from the projected uptrend in CPO prices.
"Given our diversified and integrated businesses, as well as the dedication of our determined work force, I am confident that we will be able to achieve the targets set for the full financial year 2013," Mohd Emir said.