Our Strong Leadership Paves The Way ANNUAL INTEGRATED REPORT 2022 25 While it was certainly a buoyant environment for our Upstream business, we continued to be affected by labour challenges which weighed on palm oil production. However, this issue became less severe towards the end of the year due to aggressive recruitment efforts as the flow of migrant workers resumed, hence putting us in a stronger position heading into the next year. This was further supported by steady Trading and Logistics performance and the efforts to make ourselves more resilient by optimising our operations across the entire supply chain. The elevated commodity prices were conversely negative for our Sugar Sector which operated within a high input cost environment and therefore impacted our financial performance. Above all, we advanced our value creation journey in a responsible way, embedding ESG considerations in all our endeavours. I am optimistic that all of our 51,919 employees are enthusiastic and resolute in our journey to deliver sustainable agriproducts to the world. DELIVERING VALUE Overall, the Group delivered historic highs, recording its best revenue and profits since FGV became a public listed company in 2012. Revenue was at RM25.56 billion, 31% higher than RM19.57 billion the year before, while Profit After Tax and Minority Interest (PATAMI) in 2022 increased by 14% to RM1.33 billion from RM1.17 billion recorded in 2021. The Group’s solid financial performance was largely driven by the contribution from higher palm products margins as a result of higher average CPO and Processed Palm Oil (PPO) prices realised in 2022. This was also attributed to the higher throughput and tonnage carried by the Logistics & Others Sector. The performance, however, was hampered by the losses in the Sugar Sector due to higher production costs recorded during the year. GROUP CHIEF EXECUTIVE OFFICER’S REVIEW Dato’ Mohd Nazrul Izam Mansor Group Chief Executive Officer In what has been yet another challenging year, FGV has once again stepped up, creating value not only for the business, but also for our employees and the nation. We have advanced our strategies responsibly by bolstering our labour practices, strengthening our commitments to conserve the environment and exploring ways to support the National Food Security Agenda. We did all this, while also delivering our best set of financial results as we capitalised on strong palm oil prices. REVENUE RM25.56billion PATAMI RM1.33billion
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