FGV Annual Report 2014

T he last few years have been challenging for agricultural commodity players globally as almost all commodity counters were affected by continued volatility in prices. As one of the world’s largest crude palm oil (CPO) producers, the price of CPO is of particular significance to Felda Global Ventures Holdings Berhad (FGV or the Group) as it remains the core commodity that we are most dependent upon. In 2014, the Malaysian CPO price hit a low of RM2,083 per metric tonne in October following the Government’s announcement of a delay in implementation of the biodiesel programme. Although the price subsequently began to rally, exports were affected – particularly by credit restrictions in China, traditionally a large importer of CPO. The vagaries of market forces are nothing new to established players like us. What set the sustainable players apart are the strength of its fundamentals and the effectiveness of its strategic response to prevailing conditions. These are our foundation that explains how we pull together an encouraging financial performance for the year 2014. Of note, we managed to increase our revenue by 30.2 percent to RM16.4 billion with the full acquisition of Felda Holdings Bhd (FHB) in the early part of the year whilst simultaneously growing our gross profit to RM2.12 billion compared to RM878.27 million in 2013. Our profit after taxation Introduction Performance Highlights About FGV Reports Financial Statements Others Strategy and Value Creation Performance Review & Progress Foreword to Shareholders Annual General Meeting Annual Report 2014 pg 17