Felda Global Ventures Holdings Bhd’s (FGV) net pro-fit surged 30.2 per cent to RM1.1 billion in the year ended December 31 2013, amid tough economic conditions.

FGV’s net profit in the fourth quarter multiplied to RM510.72 million from the RM73.9 million posted in the preceding quarter.

Group revenue for the full year stood at RM12.6 billion, including RM3.7 billion recorded in the fourth quarter, FGV said in a statement yesterday.

The group has declared a final dividend of 10 sen per share amounting to RM364.8 million, subject to the approval of its shareholders at a forthcoming annual general meeting.

Last December, it paid an interim dividend of six sen a share, making the total dividend payout for 2013 at 16 sen per share amounting to RM583.7 million, or 60 per cent of net profit.

“Despite the challenging envi-ronment and pressures on crude palm oil (CPO) prices, we are glad to have delivered a final bottom line that was a significant im-provement on a year-on-year basis,” FGV group president and chief executive officer Mohd Emir Mavani Abdullah said in the statement.

“The group’s results were buoyed by a fair value gain of RM328.3 million arising from the acquisition of Felda Holdings Bhd and a gain of RM494.5 million arising from fair value changes in the LLA (land lease agreement) liability,” he added.

In line with the industry’s performance, FGV’s average realised CPO price was lower compared with the previous financial year’s.

However, its palm fresh fruit bunches (FFB) production increased to 5.05 million tonnes, as FFB yield improved to 19.59 tonnes per hectare from 19.12 tonnes per hectare in 2012.

FGV produced 3.21 million tonnes of CPO during the year.

Meanwhile, the sugar segment delivered an improved profit of RM388.8 million for the year under review, representing a 24.4 per cent increase from the previous year.

This was achieved on the back of higher volume as well as lower processing and purchasing costs of refined sugar.

A reduction in cost of sales resulted in a higher gross margin of 20.2 per cent compared with 16.3 per cent last year, it added.

“The group was impacted by depressed CPO prices in 2013, and we also bore the brunt of cost increases due to the minimum wage requirement, which took effect in January 2013.

” As we look towards the new financial year, we have a host of initiatives in place to improve our profitability and our prospects,” Emir said.

Felda Global Ventures Holdings Bhd’s (FGV) net pro-fit surged 30.2 per cent to RM1.1 billion in the year ended December 31 2013, amid tough economic conditions.

FGV’s net profit in the fourth quarter multiplied to RM510.72 million from the RM73.9 million posted in the preceding quarter.

Group revenue for the full year stood at RM12.6 billion, including RM3.7 billion recorded in the fourth quarter, FGV said in a statement yesterday.

The group has declared a final dividend of 10 sen per share amounting to RM364.8 million, subject to the approval of its shareholders at a forthcoming annual general meeting.

Last December, it paid an interim dividend of six sen a share, making the total dividend payout for 2013 at 16 sen per share amounting to RM583.7 million, or 60 per cent of net profit.

“Despite the challenging envi-ronment and pressures on crude palm oil (CPO) prices, we are glad to have delivered a final bottom line that was a significant im-provement on a year-on-year basis,” FGV group president and chief executive officer Mohd Emir Mavani Abdullah said in the statement.

“The group’s results were buoyed by a fair value gain of RM328.3 million arising from the acquisition of Felda Holdings Bhd and a gain of RM494.5 million arising from fair value changes in the LLA (land lease agreement) liability,” he added.

In line with the industry’s performance, FGV’s average realised CPO price was lower compared with the previous financial year’s.

However, its palm fresh fruit bunches (FFB) production increased to 5.05 million tonnes, as FFB yield improved to 19.59 tonnes per hectare from 19.12 tonnes per hectare in 2012.

FGV produced 3.21 million tonnes of CPO during the year.

Meanwhile, the sugar segment delivered an improved profit of RM388.8 million for the year under review, representing a 24.4 per cent increase from the previous year.

This was achieved on the back of higher volume as well as lower processing and purchasing costs of refined sugar.

A reduction in cost of sales resulted in a higher gross margin of 20.2 per cent compared with 16.3 per cent last year, it added.

“The group was impacted by depressed CPO prices in 2013, and we also bore the brunt of cost increases due to the minimum wage requirement, which took effect in January 2013.

” As we look towards the new financial year, we have a host of initiatives in place to improve our profitability and our prospects,” Emir said.