FGV’s 1Q loss narrows on higher palm oil price

By AZALEA AZUAR / Graphic by MZUKRI

FGV Holdings Bhd (FGV) narrowed its net loss by 75.1% year-on-year (YoY) to RM35.42 million for the first quarter ended March 31(1Q21) as revenue increased 21.9% YoY to RM3.39 billion supported by higher crude palm oil (CPO) price and improvement in all its sectors.

According to a filing to Bursa today, FGV stated it’s plantation sector recorded a lower loss of RM0 million in the quarter as compared to a loss of RM147.27 million in 1Q20.

“The improvement was largely attributable to higher margin as a result of higher average CPO price realised of RM3,172 per mt against RM2,669 per mt registered in the previous financial period despite lower CPO sales volume by 16.3%,” it stated in its filing.

FGV’s Sugar Sector’s profit rose to RM50.68 million in the quarter compared to RM27.89 million loss in the 1Q20 as margins improved due to better capacity utilisation and lower finance costs.

FGV’s Logistic and Other Sector has recorded an increase in profit to RM11.75 million from RM9.73 million profit in the previous financial year.