KUALA LUMPUR: FGV Holdings Bhd
’s net profit surged to RM276.25 million in the financial year ended Dec 31, 2024 (FY2024) from RM101.62 million in the previous corresponding period.
Revenue also rose to RM22.16 billion from RM19.36 billion previously, driven by a higher average crude palm oil (CPO) price realised at RM4,102 per tonne, up from RM3,901 per tonne, along with higher sales volume and increased contributions from the sugar division.
"The plantation division recorded a significantly higher profit of RM260.66 million, compared to RM38.72 million in the previous financial year (FY2023).
"This growth was primarily driven by a nine per cent increase in fresh fruit bunch (FFB) production, which rose to 3.97 million tonnes from 3.62 million tonnes, resulting in a higher yield of 15.56 tonnes per hectare, up from 13.59 tonnes per hectare,” it said.
Meanwhile, FGV said the sugar division reported a profit of RM79.33 million, a significant improvement from a loss of RM23.15 million in FY2023.
"The profit was driven by improved margin from higher average selling prices, increased sales volume, and incentives received for certain packed sugar sold in the domestic market and better capacity utilisation,” it said.
During the fourth quarter of FY2024 (4Q FY2024), FGV posted a higher net profit of RM116.21 million compared to RM70.44 million in the previous corresponding period, while revenue improved to RM5.92 billion from RM5.36 billion.
On prospects, FGV said CPO prices are expected to remain elevated in the first half of 2025 following the late year-end rally that continues into the new year due to seasonally lower FFB output, the rise in Indonesia’s biodiesel mandate and tighter supplies of vegetable oils.
"Our plantation division is expected to strengthen its operations to achieve the group’s yield and oil extraction rate targets. Our sugar division is strengthening its presence in the domestic and export markets while exploring regional opportunities,” it said.
FGV also said that the group continues to engage with the government on a sustainable pricing mechanism for industry stability.
Meanwhile, it said the logistics and support division is enhancing capacity and reliability to meet demand for high-value products while focusing on cost optimisation, partnerships, and network expansion to drive growth.
"The group remains committed to responsible operations, guided by its enhanced sustainability framework. Barring any unforeseen circumstances, the board anticipates that the group’s performance will improve in the current financial year,” it added.
FGV Group chief executive officer Fakhrunniam Othman said 2024 had been challenging yet rewarding, proving FGV’s resilience in an increasingly dynamic and regulated market.
"CPO prices fluctuated due to global supply-demand shifts and geopolitical tensions, while stricter certification and sustainability standards like the Roundtable on Sustainable Palm Oil (RSPO) and European Union Deforestation Regulation (EUDR) pushed us to raise the bar.
"After a tough 2023, we’ve come back stronger, delivering solid results that reaffirm our position as a leading agribusiness player,” he said.
The group announces a final dividend payment of 5.0 sen per share, translating to a total dividend payout of approximately RM182.41 million. - Bernama
