FGV Q4 net profit falls 21%

PETALING JAYA: Felda Global Ventures Holdings Bhd (FGV) saw fourth quarter net profit for the period ended Dec 31, 2016 fall 21% on higher taxation.

The group made a net profit of RM110.6 million for the quarter, compared with RM140.7 million for the same quarter in the preceding year.

Operating profit fell 62% on lower other operating income, higher other operating expenses and commodity losses of RM37 million for the quarter, compared with the same quarter for the financial period ended Dec 31, 2015.

This was despite revenue going up 25% to RM5.2 billion, compared with RM 4.1 billion for the same quarter in the year before.

Net profit for the full year ended Dec 31, 2016 was down 84% of the net profit of RM188.8 million seen in the same period for the year ended Dec 31, 2015.

This was despite revenue for the year going up 11% to RM17.3 billion, compared with RM15.6 billion for the same period in 2015.

FGV told Bursa Malaysia in its filing, the effective tax rate of 74% for the financial year ended Dec 31, 2016 is higher than the Malaysian income tax rate of 24% due to certain expenses which are not allowable, deferred tax assets not recognised on losses in certain subsidiaries and joint ventures and de-recognition of deferred tax asset which can no longer be utilised.