KUALA LUMPUR (May 28): Felda Global Ventures Holdings Bhd's (FGV) net profit fell 22% to RM1.33 million in the first quarter ended March 31, 2018 (1QFY18) from RM1.7 million a year earlier on higher non-controlling interest. 

1Q profit before zakat and taxation rose to RM26.22 million from a loss, as its sugar business improved, FGV said.
 
In a filing with Bursa Malaysia today, FGV said group revenue dropped to RM3.6 billion from RM4.32 billion. Profit after tax stood at RM8.47 million versus a loss after tax of RM32.2 million, it added.

"The group’s revenue for the financial period ended 31 March 2018 declined by 16.5% to RM3.60 billion, compared to the previous period. 

"Profit before zakat and taxation of the group improved from a loss of RM32.26 million in previous period to a profit of RM26.22 million for the financial period ended 31 March 2018, mainly due to improvement in sugar sector’s results and absence of provision for impairment of receivables and provision for litigation loss, which have been recognised in previous period, amounting to RM62.40 million.

"The group’s improvement in operations is clearly demonstrated by a 23% increase in FFB (oil palm fresh fruit bunch) production in the first quarter of 2018, compared to the same period in 2017. 

With the group continuing to focus on its core businesses along the value chain, the board expects this positive trend to continue for the rest of the year. Whilst acknowledging market challenges ahead, the board nevertheless expects the results of 2018 to be satisfactory," FGV said.