FGV leaps into 3Q profit on higher CPO price, lower loss at sugar segment

FGV leaps into 3Q profit on higher CPO price, lower loss at sugar segment
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KUALA LUMPUR (Nov 17): FGV Holdings Bhd reported today a third-quarter (3Q) net profit of RM136.89 million versus a net loss of RM262.41 million a year earlier as the group's financial performance improved largely due to higher crude palm oil (CPO) price and lower loss at the company's sugar segment.

In a statement to Bursa Malaysia today, FGV said group revenue rose to RM3.99 billion in the third quarter ended Sept 30, 2020 (3QFY20) from RM3.55 billion.

"For the period under review, CPO price averaged RM2,645 per metric tonne (MT), which was higher than the average CPO price realised in 3QFY19 of RM1,983 per MT. 

"The sugar sector recorded lower LBZT (loss before zakat and tax) of RM56 million in 3QFY20, as compared to a loss of RM220 million in 3QFY19. This reduced loss was a result of higher sales revenue attributed to better volume in industry and export segments as well as higher export premium," FGV said.

For the first nine months of FY20, FGV said cumulative net profit stood at RM15.09 million versus a net loss of RM317.98 million a year earlier. 

Revenue was, however, lower at RM10.07 billion versus RM10.1 billion.

Looking ahead, FGV said the group expects CPO price to remain strong until the end of the year although improvement in yield achieved to date is unlikely to be sustained due to weather uncertainties and the partial lockdown in Sabah.
FGV said its sugar business will continue to focus on strategies to improve operational efficiency and financial performance.

"The board expects the overall business climate to remain uncertain and volatile," FGV said.

On Bursa today, FGV's share price rose five sen or 4.24% at 2.33pm to RM1.23 for a market value of about RM4.31 billion.

The stock saw some 17 million shares traded.

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