KUALA LUMPUR (Feb 28): FGV Holdings Bhd saw a more than three-fold jump in net profit to RM465.09 million for the fourth quarter ended Dec 31, 2021 (4QFY21), from RM131.06 million in the same period of the previous year, underpinned by significant improvement in the plantation sector on the back of higher palm oil prices.
Earnings per share rose to 12.75 sen from 3.59 sen, the group's filing with Bursa Malaysia showed.
Quarterly revenue surged 54.25% to RM6.18 billion from RM4.01 billion mainly due to higher contributions from its plantation and logistics segments.
On a quarter-on-quarter basis, the group's net profit was up 16.45% from RM399.39 million in 3QFY21, while revenue rose 16.35% from RM5.32 billion.
FGV declared a final dividend of right sen per share, to be paid on March 31.
For FY21 as a whole, FGV said the group's net profit increased to RM1.17 billion from RM146.16 million in the previous year.
Revenue rose 39.08% to RM19.58 billion from RM14.08 billion on higher crude palm oil (CPO) prices coupled with improvement in all sectors and lower fair value charge on land lease agreements.
FGV group chief executive officer Mohd Nazrul Izam Mansor said while uncertainties surrounding labour supply continue to persist, the group expects the situation to recover in the third quarter of the current year.
"Our plantation sector will keep focusing on harvesting, crop recovery and replanting efforts to ensure the profitability of the group in the long run.
"Along with this, our sugar sector will optimise its local presence through an aggressive sales strategy, regional export penetration and value-added business activities to improve sales volume.
"Similarly, our logistics sector will also continue to explore opportunities for market expansion and diversification while heightening its operational effectiveness," Nazrul said in a statement.
Shares in FGV closed nine sen or 4.62% higher at RM2.04 on Monday, valuing the plantation group at RM7.44 billion.