FGV Annual Report 2017

FELDA GLOBAL VENTURES HOLDINGS BERHAD UNDERSTANDING OUR BUSINESS CONTEXT 28 MESSAGE FROM THE GROUP CHIEF FINANCIAL OFFICER Management Discussion & Analysis A QUICK LOOK AT FINANCIAL YEAR 2017 Various developments in our operating landscape continued to influence our performance in 2017, including volatility in the foreign exchange market, uncertainty in the global economic environment, labour shortages and weather conditions that affected the supply of competing edible oils. Average Crude Palm Oil (CPO) pricing for 2017 was higher than that of 2016, with the commodity closing the year at RM2,792 per MT. To mitigate the challenges in the external environment, our Senior Management remained steadfast in introducing ways to boost our operational effectiveness and reduce cost. We are optimistic that these measures will also have an enduring impact on our financial performance in the coming years. Dear Shareholders, In the past four quarters, FGV’s Profit After Tax and Minority Interests (PATAMI) has seen encouraging trends with RM2.47 million in Q1, RM25.91 million in Q2, RM38.77 million in Q3 and finally RM76.58 million in Q4, amounting to a total of RM143.73 million for the year under review. These positive results stem from concerted efforts to focus on our core businesses and cost management initiatives. AHMAD TIFLI DATO’ HAJI MOHD TALHA EP