[ad_1]
KUALA LUMPUR: FGV Holdings Bhd
posted a profit before zakat and taxes (PBZT) of RM173 thousand for the third quarter ended September 30, 2020, compared to a loss before zakat and taxes (LBZT) of RM363 thousand in the corresponding previous quarter.
In a statement issued to Bursa Malaysia, the group said that higher crude palm oil prices and lower losses in the sugar sector contributed to the better performance.
For the quarter under review, revenues increased to RM3.99k compared to RM3.55bil in the same quarter last year.
“I am pleased to report the second consecutive quarter of positive results for FGV.
“While CPO production is in line with national production, FGV’s fresh fruit bunch (RFF) production continues to exceed national production attributed to improved crop recovery and higher ripe areas,” said the Group CEO, Datuk Haris Fadzilah Hassan.
On a segmental basis, fresh fruit bunch (RFF) production increased 9% to 1.35 million metric tons (MT) compared to 1.24 million MT in the prior year due to a better recovery of the crops and a larger mature area.
In the downstream segment, the group posted a lower PBZT of RM23k compared to RM34k in 3QFY19 due to low demand for biodiesel and a lower share of JV results.
The group’s sugar business posted a lower LBZT of RM56k in the quarter compared to a loss of RM220k a year earlier as a result of higher sales revenue in better volume in the industry and export segments and a higher export premium .
“The sugar business posted a lower LBZT in the third quarter of fiscal 2020 due to a higher gross profit margin with better production costs.
“The improvements were partially offset by amortization and
deterioration of production plants due to fire in Chuping, Perlis, and change of accounting treatment of the same assets due to cancellation of sales.
“Operationally, the UF improved to 52% due to capacity consolidation, which resulted in lower refining cost, better refined sugar processing performance and lower costs of sales and distribution,” said Haris Fadzilah.
In the logistics segment, PBZT fell 12% to RM18 thousand from RM21 thousand in the corresponding previous quarter due to lower freight throughput offset by higher volume transported for fast moving consumer goods.
Going forward, FGV’s plans to continue to grow and strengthen its high-value-added business activities that focus on integrated agriculture and consumer goods are on track and potentially accelerated to provide faster expected returns.
“We expect that FFB and CPO production in the fourth quarter of fiscal 2020 will be affected by weather uncertainties and the partial lockdown in Sabah, and that the CPO price will remain strong until the end of the year,” added Haris Fadzilah.
[ad_2]
