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KUALA LUMPUR: FGV Holdings Bhd has registered a net profit of RM136.89 million in the third quarter (Q3) ended September 30, 2020 from a net loss of RM262.41 million recorded in the same quarter last year.

This is the second consecutive quarter of positive results for FGV after losses in Q1 of 2020.

FGV's revenue in Q3 increased 12.4 per cent to RM3.99 billion from RM3.55 billion.

The company attributed the improved performance to higher crude palm oil (CPO) price and lower losses in the sugar sector.

For the period under review, CPO price averaged RM2,645 per tonne, which was higher than the average CPO price realised in Q3 of 2019 of RM1,983 per tonne.

"I am pleased to report the second consecutive quarter of positive results for FGV. While CPO production is in line with national production, FGV's fresh fruit bunches (FFB) production continues to outpace national production attributed to improving crop recovery and higher mature areas," said group chief executive officer Datuk Haris Fadzilah Hassan.

For the nine-month period, FGV registered a net profit of RM15.09 million from a net loss of RM317.98 million, while revenue dropped marginally 0.4 per cent to RM10.07 billion from RM10.1 billion.

On a segmental basis, its FFB production rose nine per cent to 1.35 million tonnes compared to 1.24 million tonnes a year earlier due to improved crop recovery and higher mature hectarage.

In the downstream segment, FGV registered a lower profit before zakat and tax (PBZT) of RM23 million versus RM34 million in Q3 of 2019 due to the low demand for biodiesel and a lower share of results from joint venture companies.

The group's sugar business posted lower loss before zakat and tax (LBZT) of RM56 million in the quarter compared to a loss of RM220 million a year earlier as a result of higher sales revenue on better volume in industry and export segments and higher export premium.

"The sugar business recorded lower LBZT in Q3 of financial year 2020 due to higher gross profit margin with improved production costs.

"The improvements were partially offset by write-off and impairment of bearer plants due to a fire incident in Chuping land, Perlis, and change of accounting treatment on the same assets due to cancellation of sales.

"Operationally, the UF (utilisation factor) improved to 52 per cent due to capacity consolidation resulting in lower refining cost, better refined sugar processing yield and reduced sales and distribution costs," Haris Fadzilah said.

In the logistics segment, PBZT fell 12 per cent to RM18 million versus RM21 million in the previous corresponding quarter due to lower bulking throughput offset by higher volume transported for fast-moving consumer goods.

FGV plans to strengthen its high value-add business activities focusing on integrated farming and fast-moving consumer goods (FMCG).

The plans are on track, and could potentially be expedited to provide faster expected returns.

The group expects both FFB and CPO production in Q4 of financial year 2020 to be impacted by weather uncertainties and partial lockdown in Sabah, with the CPO price remaining strong until the end of the year.