KUALA LUMPUR: FGV Holdings Bhd’s net profit went up to RM374.02 million in the second quarter ended June (Q2 2022) from RM338.82 million a year earlier amid strong performance by its plantation business.
Revenue soared 59% to RM7.43 billion from RM4.68 billion a year earlier due to a 31.4% growth in plantation revenue to RM620.82 million.
The sharp rise in revenue has been attributed to the higher average realised crude palm oil (CPO) price of RM5,254 per tonne recorded in the quarter under review compared with RM3,333 per tonne in Q2 2021, a filing with Bursa Malaysia said today.
The sector recognised a fair value charge on a land lease agreement (LLA) of RM57.85 million compared to fair value gain of RM180.35 million in the corresponding quarter of the previous year.
Operationally, fresh fruit bunches (FFB) production dropped to 960,000 tonnes from 1.06 million tonnes. Yield decreased to 3.5 tonnes per hectare in the current quarter, oil extraction rate was 20.63% higher from 20.16% previously.
Revenue from the logistics and other segments, however, dipped 30.4% to RM14.02 million due to impairment losses on receivables recognised of RM7.13 million, while the sugar business contracted 100% to RM23.88 million amid high input costs mainly for raw sugar, freight, natural gas and weakening ringgit despite the increase in overall average selling price.
For first half period, net profit jumped to RM743.26 million from RM303.40 million a year ago, while revenue surged to RM13.28 billion from RM8.08 billion previously.
Based on the first half performance, group CEO Nazrul Izam said FGV is on track to chart a growth trajectory and will remain cautiously optimistic towards achieving its 2022 targets.
The group declared an interim dividend of four sen per share for the quarter ended June 30 which translates to a total dividend payout of RM145.93 million. It is expected to be paid by Sept 29.