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.