In line with BP26’s long-term strategy, the company continues to strengthen its role in responsible agribusiness while pursuing new opportunities for value creation. Its performance in 2024 highlights not only financial and operational resilience but also a strong commitment to sustainability, innovation, and long-term industry growth. In 2024, FGV became the first Malaysian plantation company to attain GLOBALG.A.P V5.4-1 GFS certification for pineapple cultivation. This achievement enhances the company’s export potential while reaffirming its commitment to internationally recognised sustainability practices. Further advancing its sustainability efforts, FGV expanded its footprint in the biomass market by exporting 10,000 MT of Green Gold Label (GGL)-certified Palm Kernel Shells (PKS) to Japan. By converting palm biomass into bioenergy, the company supports the circular economy, aligning with BP26’s focus on resource monetisation and renewable energy development. Sustainability is not just our license to operate; it embodies our responsibility to contribute to nation-building and defines the legacy we aim to leave for future generations. Our efforts in 2024 underscore our determination to address ESG challenges while delivering measurable progress. On the environmental front, FGV continues to advance renewable energy adoption, reducing reliance on fossil fuels. In 2024, Guided by the principle that “not a single fruit should go to waste”, we adopted the “FootPrint” initiative to optimise resources, modernise operations, and tackle key challenges across estates and mills. Estate management focused on optimising plantation practices, including improved loose fruit collection, minimising unharvested bunches, and strengthening crop security. Regular weeding and infrastructure maintenance enhanced accessibility, while strict adherence to GAP ensured nearly full coverage of targeted fertiliser applications across mature areas. Meanwhile, mechanisation, optimised manuring, and replanting efforts boosted FFB yields, reduced reliance on manual labour, and improved overall productivity. Cost efficiencies were achieved through an optimised man-to-land ratio, reduced administrative costs, and stronger alignment between financial metrics and operational KPIs. These measures reinforced profitability and long-term financial strength, ensuring sustainable value creation. In logistics, we streamlined operations by installing Automated Tank Gauging (ATG) systems at bulking facilities, enhancing storage accuracy and cutting supply chain inefficiencies. While the implementation of SAP S/4HANA is in the sourcing stage, we have completed phases one and two of migrating operational data to cloud platforms and are progressing with the final stage to further strengthen real-time decision-making and operational visibility. Leveraging AI-powered monitoring systems, we sharpened yield predictability, positioning FGV with agility, responsiveness, and operational strength needed for long-term industry leadership. Strengthening market presence and penetration remains a key priority in FGV’s BP26 strategy, ensuring competitiveness in an increasingly dynamic global landscape. In 2024, we intensified our efforts to align with shifting consumer preferences by expanding our portfolio of certified sustainable products and enhancing traceability systems. These initiatives reinforce our commitment to sustainability while meeting the evolving demands of global markets. Building on this foundation, we further advanced our Downstream production capabilities with the launch of the Fract750 Refinery Plant at Kuantan Port. This state-of-the-art facility enables us to better serve high-value markets with specialty products, including high IV Olein (IV60-IV65) and hard stearin, thus strengthening FGV’s competitive position in premium product offerings. Expanding our premium product portfolio requires continuous innovation and diversification. To cater to evolving consumer demands, we introduced high-margin products such as liquid sugar and European Union Deforestation Regulation (EUDR)-compliant Strategic Thrust 1: Operational Improvement Strategic Thrust 3: New Growth Areas Strategic Thrust 4: Financial & Capability Building palm oil derivatives. These strategic additions reinforce FGV’s standing in the global Fast-Moving Consumer Goods (FMCG) market while ensuring compliance with international sustainability standards. Ensuring operational stability is fundamental to sustaining our market leadership. To support this, we expanded our storage capacity by adding 13 new stainless steel tanks, providing an additional 24,900 MT of capacity for renewable energy oils and biomass feedstock. This enhanced infrastructure not only improves efficiency but also enables us to meet the rising demand for sustainable energy solutions. Beyond physical infrastructure, digital transformation plays a crucial role in enhancing efficiency and transparency across our operations. As part of this initiative, we secured a tender from Lembaga Hasil Dalam Negeri (LHDN) to develop, implement, and maintain the MyInvois System and Software Development Kit (SDK) beta release. This initiative strengthens compliance, improves traceability, and further reinforces the integrity of our value chain. Below is the progress across BP26’s strategic thrusts: 30 FGV Holdings Berhad | Annual Integrated Report 2024 Strategic Thrust 2: Product & Market Penetration Group Chief Executive Officer’s Review
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