KUALA LUMPUR: FGV Holdings Bhd slipped into the red in the first quarter ended March 31, 2024 (1Q24) with a net loss of RM13.49 million from a net profit of RM12.09 million, dragged by lower profits across most divisions.
Its quarterly revenue declined marginally by 1.09 per cent to RM4.54 billion from RM4.59 billion a year ago, on the back of lower average crude palm oil (CPO) price.
As a result, FGV registered a loss per share of 0.37 sen, compared to earnings per share of 0.33 sen in 1Q23, its filing to Bursa Malaysia showed.
On a segmental basis, the group's plantation division registered a loss of RM62.14 million compared to a profit of RM58.32 million in the same quarter last year.
The oils and fats division registered an increased profit of RM26.65 million, surpassing the RM5.20 million profit from last year.
The sugar division reported an improvement in this quarter, registered a profit of RM67.17 million as compared to RM31.73 million loss a year ago.
The logistic and support division reported a decline in profit of RM32.59 million compared to RM37.64 million reported in the corresponding quarter of the previous year.
Looking ahead, FGV expects satisfactory performance in the financial year 2024 (FY24), in line with the projected CPO price movement.
It noted that the palm oil industry anticipates that CPO prices will remain above RM3,800 per tonne in the first half of 2024 (1H24), before easing as seasonal output recovers.
However, it said the potential shift to La Niña in the latter part of the year could lead to production shortfalls.
Consequently, its projected CPO price range for 2024 falls between RM3,800 to RM4,000 per tonne.
"In our plantation operations, we will continue prioritising yield enhancement activities.
"This involves closely monitoring crop harvesting and expanding mechanisation for fresh fruit bunch evacuation," it said.
FGV added that key initiatives include the execution of the withhold release order (WRO) remediation plan.
The group said it has allocated RM605 million over three years to improve worker accommodation facilities, ensuring regulatory compliance and enhancing overall employee well-being.
"FGV is committed to submitting its petition to the United States (US) Customs and Border Protection (CBP) by June 2024.
"An independent assessor is currently conducting the final assessment of the Remediation Plan's implementation.
"Upon completion, we will submit a petition to the CBP to modify the WRO," it said.