Dear Shareholders, 2024 has been a defining year for FGV, marked by significant progress and transformation. Despite the complexities of the global landscape shaped by economic fluctuations, geopolitical uncertainties, and pressing environmental challenges, we have rebounded from past hurdles and emerged stronger. The results we have achieved this year prove that we are on the right path. Our ability to adapt, innovate, and stay true to our core values has allowed us to deliver meaningful outcomes for our stakeholders. REFLECTING ON 2024 The global macroenvironment in 2024 presented a mix of challenges and opportunities that tested the resilience of plantation businesses. Market volatility, driven by trade policy restrictions and geopolitical tensions, continued to put pressure on operational margins. Meanwhile, global demand for agricultural commodities like palm oil and rubber remained robust, supported by population growth and shifting dietary patterns. Competition from alternative oils and fluctuating palm oil prices underscored the need for adaptability. FGV confronted these headwinds with strategic execution and a focused approach. The Plantation Transformation Plan proved pivotal, driving profitability by optimising plantation practices and capitalising on immediate opportunities. By addressing labour shortages and accelerating mechanisation across estates, we boosted efficiency and productivity, resulting in a 15% increase in fresh fruit bunch (FFB) yield to 15.56 metric tonnes (MT) per hectare (Ha). Favourable weather further supported these gains, mitigating risks associated with climate variability. Equally critical was our comprehensive response to the United States Customs and Border Protection (U.S CBP) to resolve the Withhold Release Order (WRO). By implementing enhanced labour standards and ethical recruitment practices, we reinforced our commitment to responsible and sustainable operations, strengthening our compliance credentials and global standing. These efforts, alongside advancements in operational strategies, further increased capacity and efficiency across our estates. These operational enhancements, combined with an improved average crude palm oil (CPO) price of RM4,102 per MT, up from RM3,901 per MT in 2023, drove positive growth. Together, these efforts have translated into a more resilient business, enabling FGV to navigate elevated input costs while seizing growth opportunities and creating sustainable value for all stakeholders. 21
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