Value Creation Is The Bedrock Of Our Business ANNUAL INTEGRATED REPORT 2022 55 GROUP BUSINESS REVIEW PLANTATION FGV’s Plantation Sector delivered a very strong year of financial performance on the back of record high palm product prices in 2022. Despite the increase in overall production costs across the Sector and further exacerbated by the shortage of plantation workers, the Sector has managed to deliver a remarkable result in 2022, recording a profit of RM2.12 billion, denoting a 33% increment as compared to RM1.60 billion in 2021. Straight from the plantation, our fresh fruit bunches are ready for processing. Average PK Price (RM/MT) In the year under review, we amplified our focus on strengthening Upstream operations to achieve our operational targets in tandem with replanting and mechanisation initiatives to improve productivity. In addition, we intensified recruitment activities to address the labour shortages hampering the plantation industry. Our Downstream business continued to grow in strength, making headway in international markets, reaffirming its market leadership in the Saji and Seri Pelangi brands and launching new Stock Keeping Units (SKUs) to meet market needs. The research arm strengthens the Sector by fully committing to develop and improve technologies and innovative approaches, to be applied in our operations through our Research & Development (R&D) Division. We are actively focused on growing operational robustness as well as creating new opportunities. The other Divisions in the Sector continued to implement the Group’s strategies and contributed positively to our performance this year. 2,675 3,671 4,832 Average CPO Price (RM/MT) 2020 2021 2022 1,558 2,844 2020 2021 2022 3,037
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