FGV Annual Integrated Report 2019

33 ANNUAL INTEGRATED REPORT 2019 03 S E C T I O N MANAGEMENT DISCUSSION & ANALYSIS EBIT VS CPO PRICE REVENUE RM13,259 Million OPERATING PROFIT BEFORE IMPAIRMENT & FAIR VALUE CHANGES IN LLA LIABILITY RM297 Million LOSS BEFORE ZAKAT AND TAXATION RM339 Million Operating profit before Impairment and LLA (RM Mil) Impairment (RM Mil) Fair value changes in LLA liabilty CPO price (RM/MT) STATEMENTS AND ANALYSIS Operating profit before impairment and LLA moved in line with the average CPO price realised except in the year 2016 where lower operating profit was recorded despite higher average CPO realised compared to 2015. FFB production dropped 16% against 2015 hence led to higher CPO cost ex-mill per MT. In addition, lower profit was contributed by Sugar Sector in 2016 due to higher raw sugar cost and weaker Ringgit. 2,800 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 2,600 1,000 EBIT RM Mil CPO price (RM/MT) -1,200 -1,000 -400 -200 0 200 400 600 800 642 104 -225 -153 -149 -254 -949 -68 -293 -237 -233 598 927 367 297 -194 -815 521 485 377 2,210 2015 2016 2017 2018 2019 2,560 2,792 2,282 2,021 Information on LLA payments can be found on our website at www.fgvholdings.com