CHALLENGES RESULTS MITIGATION ACTIONS • Increased competition from lower-cost soft oils in the MENA region, shifting demand away from palm oil. • Diverted our export focus from MENA to ASEAN countries. • Maintained export business to offset potential palm oil sales losses in MENA, resulting in ASEAN export sales surpassing MENA in 2024, despite MENA historically generating twice the sales volume. • High CPO prices squeezed margins, reducing the profitability of domestic palm oil-based products. • Strategic CPO purchasing to hedge against price hikes. • Stabilised production costs for all palm-based products despite CPO price volatility. • Stagnant refined cooking oil ceiling prices limiting pricing flexibility despite high CPO costs. • Strengthened partnership with private and government sectors to mitigate the high production costs of cooking oil. • Reduced pressures faced by cooking oil products offset by other product offerings. • Expanded product offerings under the SAJI, SERI PELANGI, and PREMEO brands to accommodate to consumer needs. CHALLENGES AND MITIGATION • Strengthening market presence through product distribution, competitive pricing strategies, and enhancements to the aroma and taste profiles of SERI PELANGI Margarine. • Increased SERI PELANGI’s margarine’s market share to 53.5% in 2024, from 49.3% in 2023. • Diversifying product portfolio by developing new offerings and strengthened retail presence for SAJI brand. • Expanded the SAJI product range with 17 new SKU, including spices and pastes such as SAJI Sup Bunjut, SAJI Paste, and SAJI Kerisik. • Increased shelf space for FGV products in the retail market. • Expanding product offerings with the launch of PREMEO Blended Vegetable Oil in two variations: Palm & Sunflower Oil and Palm & Canola Oil, available in two sizes. • Positioned PREMEO products to cater to a disctinct market segment, targeting working parents seeking higher-value, convenient, and nutritious meal options for their families. KEY INITIATIVES ACHIEVEMENTS BUSINESS PERFORMANCE REVIEW 2024 HIGHLIGHTS Received multiple accolades at the 2024 Kancil Awards for excellence in advertising, storytelling, and creative branding across various categories. SAJI Cooking Oil remains the No.1 preferred refined cooking oil in 2024. Distributed nearly RM1.3 million in wakalah funds to support the Asnaf community nationwide. Provided tailored assistance and community outreach in 10 locations across Malaysia. Received the Platinum award in the Cooking Oil category at 2024 Readers’ Digest Trusted Brand Award. 113 Sec 05 DRIVING VALUE THROUGH BUSINESS GROWTH (BUSINESS REVIEW)
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