Negative milling margins weigh on FGV


FGV reduced its guidance for 2021F FFB output growth to 2%-4% from 3%-5% to reflect worker shortages and impact from MCO 3.0.

KUALA LUMPUR: FGV Holdings Bhd’s weaker performance in the first quarter ended March 31, 2021 was due to RM65mil losses suffered from the processing of external crops in contrast with the profit of RM48mil a year ago, a research house said.

CGS-CIMB Equities Research said the RM65mil losses were due to FGV's inability to fully hedge its crude palm oil (CPO) production from the mills. The processing of external crops formed 70% of the total fresh fruit bunces (FFB) processed.

Get 30% off with our ads free Premium Plan

Monthly Plan

RM9.73/month

Annual Plan

RM8.63/month

Billed as RM103.60/year

1 month

Free Trial

For new subscribers only


Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.
Follow us on our official WhatsApp channel for breaking news alerts and key updates!
   

Next In Business News

CPO futures likely to trade lower on profit-taking next week
Oil notches weekly gains ahead of Opec+ decision
Hektar-REIT focuses on strengthening portfolio
Timber furniture sales cool as demand softens in US, Europe
Fading population dividend
CTOS eyes new overseas markets to drive growth
Big wins for billionaire Ambani in Disney tie-up
HAS inks deal for five new Airbus helicopters
Positive outlook for luxury condo market
China quants making big cap bets weather turmoil

Others Also Read