by NUR HAZIQAH A MALEK / pic by MUHD AMIN NAHARUL

FGV Holdings Bhd’s net profit grew more than 16 times to RM338.82 million for its second quarter ended June 30, 2021, from RM20.55 million in the corresponding period last year.

The group attributed the jump in earnings to the increased margin for its palm products, sugar business and a higher throughput and cargo volume handled by its logistics business.

Revenue for the quarter increased 42.1% to RM4.68 billion versus RM3.29 billion recorded in the previous year, helped by a higher average realised price of crude palm oil (CPO) at RM3,333 per metric tonne (MT), 44% higher compared to the average of RM2,309 per MT.

FGV said this has contributed to an over 100% turnaround for its plantation sector.

Group CEO Mohd Nazrul Izam Mansor said FGV posted strong operating profit despite the ongoing challenges of the pandemic and the lagging effect of dry weather.

“We remained resilient in our efforts in these unprecedented times, which has translated into the significant improvement of our financial results for this quarter,” he said in a statement today.

Year-to-date, the CPO producer had rebounded from a net loss of RM121.80 million for its first six months period in 2020 (1H20) to a net profit of RM303.40 million in Jan-June 2021.

1H21 revenue increased by 32.9% to RM8.08 billion compared to RM6.08 billion last year.

The group is expediting its vaccination programme for all workers as part of its mitigation effort in managing the risk of infections at its operating locations.

“We are currently at the final stage of acquiring the vaccines and shall commence the vaccination programme by the first week of September 2021,” the CEO said.

The group’s core sector, FGV Integrated Farming Sdn Bhd, has entered into a collaboration with Felcra Bhd and Qatar’s largest locally-owned food and dairy producer, Baladna Food Industries, to carry out comprehensive feasibility and technical study on an opportunity to co-invest in an integrated dairy farm business in Chuping, Perlis.

FGV shares closed 4.2% higher to RM1.49 today, giving it a market value of RM5.44 billion.