BULK COMMODITY Business Review: Oils & Fats Division BUSINESS ENVIRONMENT In 2024, the bulk commodity cluster operated in a volatile market shaped by fluctuating commodity prices, trade restrictions, and currency shifts. Rising palm oil production, higher shipping costs, and intense price competition added to the challenges, impacting margins and market dynamics. To strengthen its position, the cluster focused on expanding its export footprint and diversifying high-value product offerings, including sustainable palm oil. Efforts to enhance operational efficiency, secure competitive pricing, and reinforce supply chain resilience helped mitigate cost pressures and improve market competitiveness. With CPO and Processed Palm Oil (PPO) sales volume increasing by 7%, the segment capitalised on global demand, leveraging strategic partnerships and operational improvements to support continued growth. As the market evolves, agility and value-driven strategies remain crucial in maintaining FGV’s market presence while advancing its sustainability priorities. Profitability Optimisation Maximising profitability through comprehensive trade strategies, value chain improvements, and talent-led decision-making to strengthen margins. ESG Integration in Operations Embedding sustainability principles into daily operations to ensure compliance with ESG commitments and certification standards, while maintaining responsible long-term practices. Value Chain & Supply Chain Optimisation Strengthening the value chain and supply chain spectrum to enhance cost efficiency, operational resilience, and margin growth. Downstream Market Support Supporting the downstream segment by expanding market reach, strengthening presence in destination markets, and optimising trade performance. WHO ARE WE AND WHAT WE DO The Bulk Commodity cluster plays a vital role in the Oils & Fats Division, driving global sales and trading of bulk oils, while ensuring seamless process from FFB to logistics, regulatory compliance, and sustainability. Our specialists manage the sale and trade of vegetable oils, oversee global shipment and maintain traceability across local and international markets. As a reliable end-to-end solutions provider, we optimise local and export planning to ensure smooth delivery and consistent product quality, serving as a single point of contact for customers. This segment supports the Group’s entire oils & fats portfolio, including lauric and processed palm oils (PPO), while upholding high industry standards. With increasing demand for certified sustainable oils, we continue to align with evolving regulatory and market requirements, further strengthening FGV’s global competitiveness. KEY FOCUS AREAS Strengthening the bulk commodity segment through strategic sourcing, market adaptability, and operational efficiency. 92 FGV Holdings Berhad | Annual Integrated Report 2024
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