FGV 3Q net profit down 39%, dragged down by sugar sector losses

by AKMAR ANNUAR / pic source: FGV FB

FGV Holdings Bhd posted a net profit of RM241.67 million for the third quarter ended Sept 30, 2022 (3Q22), almost 40% down from the same period last year, mainly due to losses incurred in the sugar sector under its subsidiary, MSM (M) Holdings Bhd, which experienced higher production costs.

Revenue was up 16% to RM6.18 billion on the back of higher average crude palm oil (CPO) price realised in the current quarter, the company said in an exchange filing today.

Earnings per share was 6.62 sen, down from 19.26 sen earlier.

For the cumulative nine-month period (9M22), FGV saw a healthy jump in both net profit and revenue. Its net profit was up 40% to RM984.93 million, while revenue was up 45% to RM19.46 billion.

The nine-month revenue’s improved performance was largely contributed by plantation and logistic sectors but was partially affected by losses incurred in the sugar sector.

“Our improved operating performance for 9M22 is mainly attributed by higher palm products’ margins due to higher CPO price realised and higher throughput and tonnage carried by the Logistic Sector,” said FGV CEO Datuk Nazrul Mansor in a separate statement.

At trading close today, the counter fell five sen to RM1.35, just four sen shy of its 52-week low of RM1.31. At today’s close, the company has a market capitalisation of RM4.93 billion.

RELATED ARTICLES

Friday, April 26, 2019

China to buy more CPO from Malaysia

Tuesday, September 24, 2019

Will a new law put an end to haze?

Thursday, November 14, 2019

Local biodiesel demand reaches record levels, boost to CPO price