BUSINESS ENVIRONMENT The plantation estates and mills business operates in a dynamic environment shaped by global market trends, regulatory developments, and operational challenges. In 2024, profitability strengthened, supported by improved yields and greater efficiency across core operations. The Footprint initiative contributed to productivity by focusing on low hanging fruits, streamlining operations, and reducing losses. Labour availability has improved, with shortages reduced from 16% in 2023 to 12% in 2024. This contributed to operational stability, ensuring a more consistent workforce to support harvesting and crop maintenance. Meanwhile, favourable raw fertiliser prices supported improved profitability. However, the sector continues to navigate fluctuating palm oil prices, evolving sustainability requirements, and climate-related risks. Strengthening resilience through continued innovation and mechanisation, workforce optimisation, and efficiency-driven strategies remains a priority. On the supply front, global palm oil production remains stable, but market fluctuations continue to shape demand and pricing. FGV remains competitive by focusing on yield improvements and enhanced processing efficiency across its mills. Sustainability remains a priority, with a strong emphasis on responsible practices and environmental stewardship. We continuously refine our approach to ensure resilience and operational excellence. • Applying GAP, including optimised fertiliser use and empty fruit bunch (EFB) application. Achieved FFB production of 3.97 million MT in 2024, a 9% increase from 3.64 million MT in 2023. • Introducing Footprint Initiatives to improve yield through enhanced loose fruit collection, elimination of unharvested bunches, improved accessibility, and strengthened crop security. i) Yield increased to 15.56 MT per Ha in 2024, a 14% rise from 13.60 MT per Ha in 2023. ii) U tilisation factor (UF) improved to 74.76%, in tandem with higher FFB production. iii) CPO cost ex-mill decreased by 9%, driven by lower processing and upkeep costs, as well as effective maintenance systems. • Enhancing efficiency and sustainability through mechanisation, infrastructure upgrades, replanting, and improvements in OER. • Implementing a progressive recruitment process with strengthened end-to-end responsible hiring practices. Labour availability improved to 88% from 84% in 2023, driven by increased labour availability in Sabah and Sarawak. KEY INITIATIVES ACHIEVEMENTS BUSINESS PERFORMANCE REVIEW 2024 HIGHLIGHTS Completed 89% of the replanting programme. (Felling: 13,196 Ha / Planting: 18,543 Ha) Introduced the electric steer power barrow at estates and unmanned weighbridges at mills. Achieved ISO 45001 certification for five estates: Lepar Utara 11, Setiu 01, Besout 06, Tenggaroh Timur 2, and Krau 04. Received Gold Merit, Gold Class 1, and Gold Class 2 awards from Malaysian Society for Occupational Safety and Health (MSOSH) Award 2024. Managed 28,485 field workers, achieving 88% workforce availability. Improved the average oil palm age profile to 12.73 years. Applied 99% of the required fertiliser on mature areas, totalling 248,065 MT. 83 Sec 05 DRIVING VALUE THROUGH BUSINESS GROWTH (BUSINESS REVIEW)
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