FGV posts wider Q1 loss of RM142.3m

28 May 2020 / 15:07 H.

PETALING JAYA: FGV Holdings Bhd posted a net loss of RM142.3 million for the first quarter ended March 31, from a net loss of RM 3.4 million in the previous corresponding quarter due to several factors, most notably a reduced fresh fruit bunch production during the period and lower margins in both the palm oil and sugar sectors.

Revenue was also lower at RM2.78 billion, from RM3.28 billion a year before.

Group CEO Datuk Haris Fadzilah Hassan said that while 1H’20 has presented several challenges, the second half of the year is expected to improve with both FFB prodcution and overall performance picking up again.

“With Indian trade restored, and the easing of Malaysia’s movement control order, sales are expected to pick up in tandem with production, as the impacts of the drought and fertilizer adjustments in 2019 wane in the second hlaf of 2020,” he said.

The group’s new dairy business has also picked up speed, and FGV is moving quickly to commercialise its strategies and plans. It currently has four product categories, and the group is expecting to hit the market in September with new fresh milk based products.

Meanwhile, FGV’s animal feed business has made significant improvements, with an increase in sales by 244% compared to the previous period. Four new animal feed products are expected to be prloduced by the end of 2020, which will enhance the group’s range of products in this sector.

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