In contrast, the group posted net profit of RM143.63 million, or 3.9 sen per share in the previous corresponding quarter.
According to a filing with Bursa Malaysia, FGVH’s (fundamental: 1.55; valuation: 1.4) revenue shrunk 20.6% to RM2.96 billion in 1QFY15 compared to RM3.73 billion in the first quarter of financial year 2014 (1QFY14).
In a statement, FGVH attributed the dismal earnings in 1QFY15 to low production of fresh fruit bunches (FFB) and the downward trend in crude palm oil (CPO) prices that has hit most plantation-based industry players.
The group’s year-on-year operating profit slipped 65% to RM128 million due to low earnings in palm related segments and lower CPO price.
CPO prices dropped 12% to RM 2,279 per tonne in 1QFY15 from RM2,584 per tonne in 1QFY14, the statement read.
FGVH group president and chief executive officer Datuk Mohd Emir Mavani Abdullah said severe flooding at the end of 2014 and early 2015 that occurred in the East Coast of Peninsular Malaysia as well as Sabah and Sarawak had impacted FGVH.
He said as half of its plantations are located in the three most affected states during the floods, harvesting activities and transportation of FFB to nearby mills were disrupted.
As a result, FFB production volume dropped 20% to 930,000 tonnes, from 1.159 million tonnes in the previous corresponding quarter, he added.
“We note that it has been challenging for all plantation companies,” said Emir.
“As it is cyclical, the crop production is at its lowest and same goes to other companies too. In order to remain resilient during this period and to actively offset volatile CPO prices, we are focused on delivering our aggressive improvement and transformation plans in the near term,” he added.
FGV (5222) - Felda Global Ventures Q1 net profit plunges 97.5% to barely RM3.58m
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