FINANCIAL POSITION As FGV strengthened its financial performance, it also maintained a robust financial position. Total assets increased to RM18,615 million, reflecting disciplined cash flow management and strategic capital investments. This growth was primarily driven by higher inventory levels from increased volumes and a 14% rise in total cash balances, which reached RM1,728 million as at 31 December 2024 (2023: RM1,523 million). Total liabilities grew by 13% to RM10,999 million (2023: RM9,701 million), largely due to higher borrowings and operational obligations. Borrowings increased by 9% to RM3,748 million (2023: RM3,433 million), following two Sukuk Murabahah issuances to finance long-term capital expenditure, with nominal values of RM300 million and RM200 million respectively, under the Sukuk Murabahah Programme. This led to a rise in the gearing ratio to 0.49 (2023: 0.45), bringing total issuances under the programme to RM1,500 million to date. The Group’s total equity stood at RM7,616 million, a modest 0.4% increase from RM7,582 million in 2023, as retained earnings were reduced due to a RM109.44 million dividend payout to shareholders. Meanwhile, the liquidity ratio improved slightly to 1.19 (2023: 1.17), supported by enhanced profitability, prudent cost management, and strategic investments in operational efficiency and sustainability initiatives. Earnings per share (EPS) rose to 7.6 sen (2023: 2.8 sen), in line with FGV’s improved profitability. This also contributed to an increase in return on shareholders’ funds (ROSF) to 4.53% (2023: 1.70%), demonstrating stronger returns for investors. Additionally, net tangible assets (NTA) per share improved to RM1.42 (2023: RM1.39), reinforcing FGV’s financial stability. STRATEGIC HIGHLIGHTS To support long-term business needs and strengthen financial management, FGV advanced several initiatives in 2024 focused on capability building and digital transformation. FGV Group Finance hosted the FGV Finance Conference 2024, themed “AI-Enabled Sustainable Finance: The Future of Corporate Responsibility,” from 12 to 14 December 2024 at DoubleTree by Hilton Putrajaya Lakeside. The event brought together around 200 participants from FGV subsidiaries, joint ventures, and offices in the United States, Pakistan, and Indonesia, as well as representatives from FELDA and KPF. Held for the first time since 2008, the conference offered updates on industry developments and regulations, knowledge-sharing, and networking opportunities reinforcing FGV’s commitment to service quality and professional excellence. In line with the national rollout of e-Invoicing in August 2024, FGV adopted the system to strengthen regulatory compliance and transparency in financial transactions. These efforts are part of ongoing automation and AI integration across finance-related processes, contributing to efficient, scalable, and sustainable financial management. To further improve operational efficiency and decision-making, FGV also implemented digitalisation initiatives to enhance access to relevant financial information. As part of this strategy, the Group is upgrading its SAP ECC environment to SAP S/4HANA RISE with SAP a key step to ensure system continuity while enabling improved performance and a more seamless user experience. OUTLOOK CPO prices are expected to remain elevated in early 2025, supported by seasonally lower FFB output, Indonesia’s biodiesel mandate, and tight global vegetable oil supplies. However, stricter compliance with the European Union Deforestation Regulation (EUDR) will require continuous advancements in traceability and responsible sourcing to maintain market access and competitiveness. FGV remains focused on driving operational excellence across all divisions. The Plantation Division will prioritise maximising yields and improving cost efficiency. The Oils & Fats Division will expand its value-added product offerings, strengthening its market position. The Sugar Division will refine pricing strategies, while enhancing operational performance. Meanwhile, the Logistics & Support Division will focus on optimising capacity utilisation and improving cost efficiency to enhance overall supply chain effectiveness. Guided by FGV’s Business Plan, FGV will continue expanding its market presence, managing risks proactively, and embedding responsible practices across its operations. By aligning with evolving market conditions and regulatory requirements, we are confident in delivering stronger performance and long-term value creation in 2025. At the FGV Finance Conference 2024, discussions focused on driving the advancement of digital transformation in finance. 68 FGV Holdings Berhad | Annual Integrated Report 2024 Group Financial Review
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