1Q FY2023

RESULTS

`

ANNOUNCEMENT

Wednesday, 31 May 2023 | 10.00 AM - 11.00 AM

FGV HOLDINGS BERHAD

Financial Results Briefing 1st Quarter FY2023

31 May 2023

DISCLAIMER

These materials have been prepared by FGV Holdings Berhad ("FGV" or the "Company") solely for informational purposes, and are strictly confidential and may not be taken away, reproduced or redistributed to any other person. By attending this presentation, participants agree not to remove this document from the conference room where such documents are provided without express written consent from the Company. Participants agree further not to photograph, copy or otherwise reproduce these materials at any point of time during the presentation or while in your possession. By attending this presentation, you are agreeing to be bound by the foregoing restrictions. Any failure to comply with these restrictions may result in a violation of applicable laws and commencement of legal proceedings against you.

It is not the Company's intention to provide, and you may not rely on these materials as providing, a complete or comprehensive analysis of the Company's financial position or prospects. The information contained in these materials has not been independently verified and is subject to verification, completion and change without notice. The information contained in these materials is current as of the date hereof and are subject to change without notice, and its accuracy is not guaranteed. The Company is not under any obligation to update or keep current the information contained in these materials subsequent to the date hereof. Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of the Company, or any of its directors and affiliates or any other person, as to, and no reliance should be placed for any purposes whatsoever on, the fairness, accuracy, completeness or correctness of, or any errors or omissions in, the information contained in these materials. Neither the Company, its directors, officers or employees nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of these materials or their contents or otherwise arising in connection therewith.

These materials contain historical information of the Company which should not be regarded as an indication of future performance or results. These materials may also contain forward-looking statements that are, by their nature, subject to significant risks and uncertainties. These forward-looking statements reflect the Company's current views with respect to future events and are not a guarantee of future performance or results. Actual results, performance or achievements of the Company may differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future, and must be read together with such assumptions. Predictions, projections or forecasts of the economy or economic trends of the markets are not necessarily indicative of the future or likely performance of the Company, and the forecast financial performance of the Company is not guaranteed. No reliance should be placed on these forward- looking statements, if any.

3

TODAY'S AGENDA

Overview of 1Q FY2023

4

1Q FY2023 Results

6

Business Updates & Market Outlook

18

4

OVERVIEW OF 1Q FY2023

PLANTATION

  • Heavy rainfall at the start of FY2023 affected palm oil production and the quality of FFB ripeness.
  • The average price of fertiliser increased by 34% to around RM2,000 per MT. (1Q FY2022: RM1,490 per MT)
  • The foreign worker shortage was reduced from 13% to 11%.
  • The CPO cost ex-mill increased by
    45% to RM2,944 per MT. (1Q FY2022: RM2,057 per MT)
  • The average CPO price was recorded at RM3,988 per MT (1Q FY2022: RM5,058 per MT) a decrease of 21% YoY.

SUGAR

  • The price of raw sugar continues to be elevated at around USD21.0 cents per pound (1Q FY2022: USD18.5 cents per pound) due to estimates of low sugar production from producing countries such as Thailand and Brazil.
  • Energy prices remain high, with a 65% increase YoY due to tighter global supply in the market.

LOGISTICS

  • The increased traction on biofuel and premium oil activities in global markets has contributed to better storage utilisation at strategic locations.

SUSTAINABILITY

  • FGV has committed to reimbursing recruitment fees to its former and current migrant workers which will be paid in three tranches (Mar, Jun & Sep 2023).
  • ELEVATE is currently conducting a verification of the first tranche of FGV's reimbursement to around 20,000 migrant workers.
  • FGV is finalising the implementation of other aspects of the remediation plan, covering 12 focus areas.
  • Organised a panel session on Women's Empowerment and Gender Equality in the Palm Oil Sector.

FGV's PATAMI decreased significantly by 97% to RM12 mn from RM369 mn recorded in the same quarter last year.

This result was recorded on the back of RM4,593 mn revenue, which fell 22% from RM5,854 mn in 1Q FY2022.

5

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

FGV Holdings Bhd published this content on 31 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 May 2023 04:09:29 UTC.