FGV, the world's largest crude palm oil (CPO) producer said on Monday, the net profit was down by 21.9% from RM1.70mil a year ago.
However, its profit before tax of RM26.22mil was a turnaround from the loss of RM32.26mil a year ago. Its revenue fell by 16.5% to RM3.60bil from RM4.31bil a year ago.
FGV said the sugar sector recorded profit of RM22.01mil, in contrast with a loss of RM23.16mil a year ago. This is mainly due to lower raw material costs, favourable foreign exchange rate, and a reduction in administrative expenses by 33.0%, quarter-on-quarter.
The logistics and support business sector recorded a profit of RM25.36mil in the Q1, 2018, compared with a loss of RM39.50mil a year ago.
“This was mainly attributable to higher throughput in the bulking business, and increased tonnage carried by the group’s transport operations,” it said.
On the plantation sector, FGV said despite improved productivity and a higher sales volume, the profit fell 61.4% to RM18.29mil.
“This is due to lower average crude palm oil (CPO) price realised of RM2,472 per tonne compared with RM3,061 per tonne in Q1 2017.
“The sector recorded a significant improvement in operational performance, with an 18.4% and 23% increase in CPO and fresh fruit bunches (FFB) production, respectively, quarter-on-quarter,” it said.
FGV’s group president and chief executive officer Datuk Zakaria Arshad said the renewed focus on operational improvement to increase productivity was bearing fruit.
He added that FGV will continue to push for greater productivity and cost efficiency in every sector.
“We expect to see this improving trend to continue, as we are already seeing the results of efforts to enhance our performance. FGV has recruited sufficient labour to meet its requirements. Also, we have been aggressively replanting to correct our age profile.
“There is still much to do. We are focused on delivering results,” Zakaria said.
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