Our Strong Leadership Paves The Way 20 FGV HOLDINGS BERHAD CHAIRMAN’S STATEMENT It was an impressive year for FGV as we delivered our best-ever financial performance since our listing and made further headway in our sustainability journey. We continue to position ourselves for long-term sustainable growth as we advance responsibly to the next level, investing resources in our people and crystallising the strategies needed to deliver sustainable agriproducts to the world. This year’s achievement was the result of the unwavering and tireless efforts put forth by our Management Team and employees. NAVIGATING THE POST-PANDEMIC RECOVERY In 2022, the world saw a broader return to normalcy for economies, businesses and societies following two full years of pandemic-led disruptions as lockdowns were lifted. This also marked the return to more normal levels of consumption which caught many off-guard due to the pace of the rebound. As a result, prices of energy and commodities escalated and even reached decade-high levels in the first half of 2022. This was further aggravated by the Russia-Ukraine conflict which set off a chain of events that pushed food and fertiliser prices higher and disrupted supply chains. The price of Crude Palm Oil (CPO) per MT, which had already been tracking upward in 2021 was pushed even higher in 2022. The effect of the price rises increased inflation significantly and led to central banks globally tightening monetary policy with most countries, including Malaysia, seeing interest rates back to pre-pandemic levels. Although the world’s Gross Domestic Product (GDP) grew steadily in 2022, it is expected to moderate going forward as high interest rates start to dampen spending and demand1. Dato’ Shahrol Anuwar Sarman Chairman (Interim) FINANCIAL HIGHLIGHTS With the elevated palm oil price environment supporting our Plantation Sector’s higher CPO production, the Group delivered record revenues and profits in 2022, delivering our best results since FGV was listed. This was further supported by robust results from our Logistics & Others Sector but was partially offset by the losses in the Sugar Sector due to higher input costs. Based on our commendable results, the Board approved an interim dividend of 4 sen per share in the second quarter of 2022 and declared a final dividend of 11 sen per share, for a total dividend payout of RM547 million for the year. FGV’S AVERAGE CPO PRICE REACHED A HISTORICAL HIGH OF RM4,832 PER MT IN 2022. 1 Source: International Monetary Fund (IMF), January 2023 World Economic Outlook Update TOTAL DIVIDEND 15sen per share
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