Value Creation Is The Bedrock Of Our Business 50 FGV HOLDINGS BERHAD 2022 2021 Cash and Cash Equivalents (RM million) 1,397 2,032 Total Borrowings (RM million) 3,059 3,998 Liquidity Ratio (times) 1.17 1.22 Gearing Ratio (times) 0.4 0.6 Earnings Per Share (sen) 36.4 32.0 Dividend (sen) 15 8 The Group’s total assets in 2022 increased marginally to RM18,111 million from RM17,956 million registered in 2021. The increase was attributed to a 23% rise in inventories resulting from higher prices and volumes. Total liabilities reduced by 5% due to the decrease in total borrowings by 24%, but was partially offset by a 36% increase in payables. Included in the payables was a provision for compensation of recruitment fees amounting to RM112 million. The provision was part of the Group’s remediation plan for its existing and former migrant workers. The effort is also done to ensure that FGV’s workers are free from forced labour and exploitative practices and is aligned with the Group’s No Recruitment Fees policy. Total equity for the Group in 2022 stood at RM7,885 million, an increase of 10% from RM7,187 million registered in the previous year. The Group’s total cash balance as at 31 December 2022 decreased by 31% to RM1,397 million from RM2,032 million recorded in 2021. This was due to higher net cash used in investing and financing activities of RM724 million and RM2,173 million respectively which included payment of dividends to shareholders and non-controlling interests of RM549 million, loan and LLA repayment to FELDA of RM777 million. In 2022, the gearing ratio improved to 0.39 times from 0.56 times in 2021 due to lower borrowings and improved total equity as a result of higher profits. Meanwhile, the liquidity ratio decreased to 1.17 in 2022 from 1.22 recorded in 2021 due to increase in payables and reclassification of loan due to FELDA to current liability. This is in relation to final settlement to be made in 2023. The Group recorded a better net asset per share of RM1.71 compared to RM1.49 in 2021, while earnings per share also increased to 36.4 sen from 32.0 sen in the previous year, in tandem with the Group’s improved results. The Group registered a higher effective tax rate due to provisions for Cukai Makmur (Prosperity Tax) of approximately RM107 million and lower utilisation of business losses brought forward in 2022. In light of FGV’s improved performance, the Board of Directors approved a total dividend payout of 15 sen per share for 2022 amounting to RM547 million, the highest payout since 2014. The interim dividend of 4 sen was paid on 29 September 2022, while the final dividend of 11 sen per share was paid on 13 April 2023. Key Financial Highlights Group Financial Review From left • Chew Tong Lai - Head, Group Procurement • Daniel VC Lee - Group Information Officer • Aznur Kama Azmir - Group Financial Controller • Dato’ Mohd Hairul Abdul Hamid - Group Chief Financial Officer • Manvinder Sigh - Group Tax Controller • Shahrul Azman Mohd Mokhtar - Group Treasurer • Nor Marhamah Yahya - General Counsel
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