KUALA LUMPUR: FGV Holdings Bhd’s net profit jumped 58 per cent in the second quarter of 2025, driven by significant improvements in the plantation divisions.
The net profit rose to RM136.9 million in the quarter ended June 30 from RM86 million in the same period last year.
FGV’s revenue grew 5.0 per cent to RM5.79 billion from RM5.5 billion, supported by a higher average crude palm oil (CPO) price realised of RM4,218 per tonne from RM4,103 per tonne previously.
According to FGV, the plantation division posted a higher profit of RM157 million, up 55 per cent from RM101 million last year, supported by higher fresh fruit bunch production at 1.13 million tonne versus 0.96 million tone.
The performance led to improved yield of 4.45 tonne per hectare from 3.76 tonne per hectare previously.
The company said estate operational costs fell 21 per cent, while the oil extraction rate (OER) was slightly lower at 20.09 per cent against 20.48 per cent last year.
Meanwhile, the rubber segment posted higher losses amid weaker sales volumes, price mismatches and shipment delays, alongside an impairment of RM8.60 million for loss-making factories.
The fertiliser business margins were also compressed by higher raw material costs, coupled with lower average selling prices.
The fair value charge on the land lease agreement rose to RM131.84 million from RM66.68 million in the previous year.
Culmulatively, FGV’s net profit in the first six months stood at RM173 million, up 138 per cent from RM72.9 million last year.
Its revenue improved 7.6 per cent to RM10.8 billion from RM10 billion.
In a statement, group chief executive officer Fakhrunniam Othman said the performance reflects FGV’s resilience and ability to adapt in a challenging environment.
“We are steadily progressing in strengthening our core businesses while building new growth pathways that will position FGV for the future.
“This balance between stability and transformation allows us to advance our immediate priorities while staying focused on long-term ambitions,” he added.
FGV said the CPO price is expected to remain stable, supported by improved production from favourable weather and seasonally higher cropping cycles.
It noted that export demand may remain steady given CPO’s competitive pricing relative to other edible oils.
However, the outlook remains subject to volatility from geopolitical tensions, trade tariffs and policy changes.
“FGV expects stronger FFB production in the second half of the year and will continue to prioritise operational excellence, expanding value-added offerings, strengthening market presence, and enhancing both capacity and supply chain efficiency,” it added.
As the group will be delisted from the Main Market of Bursa Malaysia on Aug 28, FGV said it is a move that will enable greater agility, closer alignment with its major shareholder, the Federal Land Development Authority (Felda) and enhanced focus on its role as a leading agri-business and Malaysia’s food company.
Fakhrunniam said the company will focus on three priorities: productivity, growth and people.
“Productivity means fulfilling our 2025 commitments through operational excellence and strong agricultural practices.
“Growth will be driven by product diversification, market development, circular economy, strategic collaborations, digitalisation and our energy transition journey.
“People remain at the heart of FGV. Unity of purpose, shared alignment and a culture of resilience will define our success.,” he added.
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