Value Creation Is The Bedrock Of Our Business 56 FGV HOLDINGS BERHAD Group Business Review FINANCIAL PERFORMANCE RM22,573 million REVENUE 2021: RM16,920 million RM2,118 million PBT 2021: RM1,602 million During the year under review, the Plantation Sector witnessed a remarkable surge in profitability, with profits soaring from RM1,602 million in 2021 to RM2,118 million in 2022. The principal driver of this impressive growth was the substantial 32% increase in the average CPO price realised at RM4,832 per MT from RM3,671 per MT in the previous year. In addition, the Sector recorded a notable 19% increase in sales volume, further contributing to the rise in profits. However, the impressive performance was partially offset by the increase in CPO cost ex-mill, which rose from RM1,801 per MT to RM2,182 per MT, mainly due to the increase in the price of fertiliser as well as energy and manpower costs. The Downstream Division reported higher overall margins from all businesses, including the oleochemical segment, which saw increased in demand in the personal care industry and further penetration in higher margin accounts. The increase in commodity prices and the higher sales volumes in the oils & fats and biodiesel businesses also contributed to the higher margins. Contributions from the R&D Division continued to improve, driven by higher margins from the fertiliser and seed businesses, together with a higher volume sold. Standing first rows from left • Anuar Abdul Talib - CEO, FGV Rubber Industries Sdn Bhd • Hj Abu Samah Sulaiman - Head, Renewable Energy Division • Mohd Aris Omar - Head, Plantation Engineering • Mohd Sarian Md Shahid - Group Divisional Director, Plantation Sector & Head, Upstream Division • Roslizam Shaari - Head, HR Plantation Sector • Mazatul Aishah Aziz - Head, Corporate Affairs • Shahril Ibrahim - Group Accountant, Plantation Sector Standing second rows from left • Mohd Azam Si Rajab - CEO, FGV Trading Sdn Bhd • Zarif Zainul - Head, Field Workforce & Settlers Engagement • Rahimi Hissan Wahid - CEO, FGV Plantations (Malaysia) Sdn Bhd (FGVPM) • Abdul Malik Sekak - CEO, FGV Palm Industries Sdn Bhd • Zulkifli Othman - Head, Downstream Division & Business Development and Officer-In-Charge of Head, Marketing & Trading Division • Romzi Ishak - Head, R&D Division RM15,310 million REVENUE 2021: RM11,486 million 2021: RM1,440 million RM1,602 million PBT UPSTREAM RM6,214 million REVENUE 2021: RM4,983 million 2021: RM105 million RM350 million PBT RM1,049 million REVENUE 2021: RM451 million 2021: RM57 million RM166 million PBT R&D DOWNSTREAM
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