• Expanding tolling production for CPO and blended oils. • Achieved the highest tolling volumes for CPO and blended oils since 2020. • Enhancing refinery capabilities to support growing demand for refined and crushed products. • Developed and commisioned the new Fract750 refinery at Kuantan Port for premium products. • Implementing targeted initiatives to improve refinery efficiency. • Increased average refinery’s UF to 80% and reduced processing costs by 6%. • Enhancing export capabilities for lauric products to strengthen market reach and competitiveness. • Achieved General Administration of Customs China (GACC) registration, enabling lauric products to be exported to China. KEY INITIATIVES ACHIEVEMENTS BUSINESS PERFORMANCE REVIEW 2024 HIGHLIGHTS CHALLENGES AND MITIGATION CHALLENGES MITIGATION ACTIONS RESULTS • Rising tariffs and increasing operational expenses, impacting Sahabat operations. • Negotiated a penalty-based agreement with Independent Power Producer (IPP) to offset increased processing costs with reduced start-up expenses. • Adopted Eco-Diesel fuel as part of boiler operations. • Projected to reduce plant startup costs by a minimum of 30%. • Lower UF at Tawau Oil Products refinery resulted in reduced quotas by Kementerian Perdagangan Dalam Negeri, Koperasi Dan Kepenggunaan (KPDNKK). • Engaged key customers to boost volume of packed products. • Finalised an agreement with 99 Speedmart to boost the volume of packed products. • Enhanced packing line versatility to ensure cost-effectiveness. • Intensified price competition and low ceiling prices due to high CPO costs, impacting packed product sales. • Improved processing efficiency for cooking oil. • Managed energy costs effectively despite rising prices, keeping expenses within budget. OUTLOOK AND PROSPECTS The edible oil business will continue to operate in a competitive and evolving market in 2025, with dynamics largely mirroring those of 2024. Moving forward, we will focus on expanding our market presence and diversifying product offerings by advancing downstream and targeting niche markets to enhance resilience against price volatility. Key priorities include scaling up hard stearin production, increasing local market share for cooking oil and PKE, and expanding the refined lauric segment into new territories, capitalising on the growing demand for sustainable palm oil. Additionally, we aim to strengthen brand presence in untapped international markets such as Korea and China, leveraging rising demand for renewable feedstock. These efforts will reinforce FGV’s market positioning while upholding the highest sustainability standards. Obtained Lauric Production License for Sahabat Oils Products refinery. Won Best Kernel Crusher Award from MPOB. Earned the Silver Award at the Malaysian Society for Occupational Safety and Health (MSOSH) Awards. F irst Malaysian plantation companies to produce CPKO, in accordance with EUDR requirements. Achieved ISCC certification for all FGV refineries. Received MS682 and Halal certifications for Kuantan Oils Products refinery. 95 Sec 05 DRIVING VALUE THROUGH BUSINESS GROWTH (BUSINESS REVIEW)
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