BUILDING VALUE AT OUR CORE SEC 5 44 GROUP FINANCIAL REVIEW In 2023, the Group’s total assets decreased by 5% to RM17,283 million from RM18,111 million in 2022, mainly due to lower inventories resulting from lower prices and quantities. Total liabilities reduced by 5% to RM9,701 million in 2023 compared to RM10,226 million in 2022, attributable to a decline in payables and the final settlement of the loan to the ultimate holding company. Total equity for the Group stood at RM7,582 million in 2023, a 4% decrease from RM7,885 million in 2022 due to the lower profit achieved in 2023. Meanwhile, the Group’s total cash balance as of 31 December 2023 amounting to RM1,523 million, showing a 9% increase from RM1,397 million in 2022. The increase was derived from cash generated by operational activities amounting to RM1,551 million, offset by RM867 million and RM580 million cash utilised in investing and financing activities, respectively. The cash used in investing and financing activities included the purchase of assets amounting to RM1,008 million and the payment of a dividend of RM401 million, made to the shareholders in April 2023. The gearing ratio increased by 15% to 0.45 in 2023 compared to 0.39 in 2022. This was due to higher borrowings, which increased by 12% to RM3,433 million following the Group’s issuance of a second Sukuk Murabahah amounting to RM500 million, coupled with a lower total equity. Meanwhile, the liquidity ratio remained at 1.17 in 2023, similar to 2022. The Group recorded net asset per share of RM1.64 in 2023 compared to RM1.71 in 2022 due to lower equity. Similarly, earnings per share decreased by 92% to 2.8 sen in 2023 compared to 36.4 sen in 2022, due to lower profits recorded. For the financial year ended 31 December 2023, FGV’s effective tax rate stood at 68%, exceeding the Malaysian income tax rate of 24%. This was due to certain non-allowable expenses and deferred tax assets not recognised on losses in certain subsidiaries. The Board of Directors has declared a total dividend payout of 3.0 sen per share for 2023, amounting to RM109 million for the financial year ended 31 December 2023. Key Financial Highlights 2023 2022 Cash and Cash Equivalents (RM million) 1,523 1,397 Total Borrowings (RM million) 3,433 3,059 Liquidity Ratio 1.17 1.17 Gearing Ratio 0.45 0.39 Earnings Per Share (sen) 2.8 36.4 Dividend (sen) 3 15
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