BUILDING VALUE AT OUR CORE SEC 5 46 GROUP FINANCIAL REVIEW OUTLOOK In 2024, the global economy is poised for steady growth despite high interest rates and debt, with a faster-than-expected inflation decline. Malaysia’s economy is set to expand at 4% to 5%, benefitting from robust domestic spending and rebounding external demand with moderate inflation1. The palm industry foresees global palm oil exports to be impacted by Indonesia’s B35 biodiesel mandate, along with weak demand and competition from other oils. This will put pressure on global palm oil exports and keeping CPO prices within the RM3,900 to RM4,200 per MT range. The Plantation Division expects a modest rise in Fresh Fruit Bunch (FFB) production and yield due to improved labour supply and lower costs. Innovations and government collaboration will be further explored in the Sugar Division to secure sustainable pricing mechanism, enhance food security, and introduce premium products. The Logistics and Support Division aims to increase bulking capacity and manage a higher volume of high-value products, diversifying to address palm production volatility. The Consumer Products Division will strengthen its expansion efforts by leveraging the Fast-Moving Consumer Goods (FMCG) Distributorship Network Model and transitioning to a premium brand, alongside operational modernisations to meet international demand. We will also focus on growing the share of alternative protein feeds and sustainable feed ingredients within the Integrated Farming Division, focusing on competitive pricing and quality. EXTRACT OF STATEMENT OF PROFIT OR LOSS 2023 RM’000 2022 RM’000 Revenue 19,359,186 25,561,543 Operating Profit 403,135 1,906,655 Profit Before Zakat and Taxation 336,442 1,955,223 Profit for the Financial Year 112,442 1,268,601 Profit Attributable to: Owners of the Company 101,618 1,329,226 Non-Controlling Interests 10,824 (60,625) 112,442 1,268,601 1 Department of Statistic Malaysia, February 2024
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