Felda Global Ventures 1H PBT rises to RM55.974 million

KUALA LUMPUR: Felda Global Ventures Holdings Bhd’s pre-tax profit for the six months ended June 30 2017 (1HFY2017) increased to RM55.974 million from RM41.515 million reported in the corresponding period last year.

This was achieved on the back of a higher revenue of RM8.547 billion derived from higher income accrued from plantation and logistics and, other sectors versus RM7.895 billion recorded in the previous corresponding period, it said in a filing to Bursa Malaysia.

The plantation sector recorded a significant improvement to register RM148 million profits for 1H2017 compared with losses of RM9.69 million chalked up in the previous year due to higher prices, better output and lower production cost of crude palm oil.

The positive results, were, however, partly offset by losses incurred in the sugar sector as a result of higher raw sugar cost, the impairment of receivables of RM47.62 million and provision for litigation loss of RM32.84 million recognised in the plantation sector in the preceding quarter, it added.

“The land lease agreement air value charges also increased 18 per cent to RM121 million compared with 1H2016,” said FGV.

Meanwhile, the group was currently on track to achieve its replanting target of 14,000 hectares for this year, of which, around 10,000 hectares have been cleared and 1,478 hectares have been fully planted in the first half of this year.

The group has reduced administrative expenses by five per cent to RM439 million compared with the same period last year.

Moving forward, FGV expected fresh fruit bunch production for the second half of the year to improve further due to increased productivity resulting from higher output of crops and consolidated efforts to overcome the shortage of plantation workers. — Bernama