FGV HOLDINGS BERHAD | ANNUAL INTEGRATED REPORT 2023 49 The Plantation Division’s performance in 2023 was challenged by low yield, high production costs, and adverse weather conditions. These challenges were exacerbated by a lower average CPO price realised of RM3,901 per MT, against RM4,832 per MT registered in 2022, along with reduced profit margins from the Downstream and Fertiliser businesses. As a result, profits declined to RM292 million, down from RM2,118 million achieved last year. To address these challenges, we are implementing strategies to enhance operational efficiency and resilience. This includes ongoing efforts to improve yield through estate monitoring, mechanisation, and digitalisation, aimed at streamlining the supply chain and improving productivity. Additionally, we are exploring alternative sourcing options to mitigate affordability and availability issues, while implementing cost optimisation strategies to strengthen our ability to navigate these challenges effectively. PLANTATION GROUP BUSINESS REVIEW Our estate workers play a vital role in ensuring productivity and growth in plantation operations. Average CPO Price (RM/MT) 3,901 4,832 3,671 2023 2022 2021 Average PK Price (RM/MT) 1,991 3,037 2,844 2023 2022 2021
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