57 ANNUAL INTEGRATED REPORT 2021 ADDITIONAL INFORMATION HOW WE ARE GOVERNED REINFORCING SUSTAINABILITY UPSTREAM Revenue from Upstream Division rose 45% to RM11.49 billion (FY2020: RM7.92 billion) and PBZT rose to RM1.44 billion (FY2020: RM279 million). The growth in profit was contributed by improvements in palm products’ margins in tandem with strong CPO price. However, the financial performance was partly negated by the 8% increase in CPO cost ex-mill resulting from the lower Fresh Fruit Bunch (FFB) and CPO production by 7% respectively, and the windfall tax paid based on high CPO price recorded during the year. DOWNSTREAM Downstream revenue increased 48% to RM4.98 billion (FY2020: RM3.38 billion). However, our Downstream Division recorded a lower PBZT of RM105 million due to the lower Crude Palm Kernel Oil (CPKO) and Refined, Bleached, Deodorised Palm Kernel Oil (RBDPKO) profit margins caused by surging CPO cost. The marked profit reduction was also due to the absence of gains from disposals of investments amounting to RM31 million recognised in the previous year. R&D Revenue from the R&D Division was at RM451 million (FY2020: RM281 million) to record an improved PBZT of RM57 million (FY2020: LBZT RM34 million). This result was mainly due to higher margins from fertiliser and seeds business coupled with higher volume sold. The rise in domestic and overseas seed demand and fertiliser sales were attributed to high CPO prices recorded in FY2021. Current Strengths • Among the world’s leading global CPO producer, accounting for 4% of world production • Availability of good planting material DXP Yangambi (high yield potential) FINANCIAL PERFORMANCE Landbank Landbank (Ha) 2021 2020 2019 Malaysia • Peninsular • Sabah & Sarawak 252,451 163,856 252,543 164,154 252,509 164,144 Indonesia • Subsidiary • Joint Venture (JV) 22,578 – 22,578 42,824 22,578 42,824 Total landbank (excluding JVs) 438,885 439,275 439,230 Planted areas (oil palm) • Immature • Mature 56,660 279,655 59,842 275,562 74,953 263,484 Total planted areas (oil palm) 336,315 335,404 338,437 PERFORMANCE SUMMARY BY DIVISION UPSTREAM PBZT Revenue RM1,440 million RM11,486 million PBZT Revenue RM105 million RM4,983 million PBZT Revenue RM57 million RM451 million 2020 : RM7,917 million 2020 : RM3,375 million 2020 : RM281 million 2020 : RM279 million 2020 : RM157 million 2020 : (RM34 million)
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