KUALA LUMPUR: FGV Holdings Bhd posted net profit of RM338.82mil in the second quarter ended June 30, 2021, a surge of 1,550% from with RM20.55mil a year ago due to higher palm products margins and its higher profit margins for its sugar business.
FGV said on Monday in addition, the group reported fair value gain on and land lease agreement (LLA) of RM180m compared to fair value charge on LLA of RM76mil a year ago.
Its revenue increased by 44.2% to RM4.68bil from RM3.29bil. Earnings per share were 9.3 sen compared with 0.6 sen.
For the first half, its net profit was RM303.39mil compared with a net loss of RM121.80mil in the previous corresponding period. Its revenue increased by 32.8% to RM8.07bil from RM6.07bil.
Commenting on the second quarter, it said its earnings were driven by higher operating profit of RM338mil in 2Q FY2021 compared to RM115mil in the same period last year.
The main factors were increased palm products margin, improved gross profit margin for its Sugar business, as well as higher throughput and cargo volume handled by its logistics business and fair value gain on LLA of RM180m compared to fair value charge on LLA of RM76mil a yer ago.
“The gain on LLA for the current quarter was attributed mainly to the revision in the yield assumption used in arriving at the LLA liability,” it said.
For the period under review, the group has recorded higher average crude palm oil (CPO) price realised of RM3,333 per metric tonne (MT) which is 44% higher compared to average CPO price realised in 2Q FY2020 of RM2,309 per MT.
“This contributed to a turnaround of more than 100% year-on-year (y-o-y) for the group’s plantation sector,” it said.
For the first half, its net profit was RM303.39mil compared with a net loss of RM121.80mil in the previous corresponding period. Its revenue increased by 32.8% to RM8.07bil from RM6.07bil.
FGV group CEO Mohd Nazrul Izam Mansor said despite the ongoing challenges of the pandemic, as well as the lagging effect of dry weather, FGV posted strong operating profit.
“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.