KUALA LUMPUR: FGV Holdings Bhd sees its plantation sector operations continuing to improve this year through mechanisation, replanting programmes, and cost optimisation initiatives as it manages rising operational costs and energy prices.
Group chief executive officer, Datuk Nazrul Mansor, said as a result of its enhanced recruitment strategies executed throughout the year, the shortage of foreign workers had shrunk from 32 per cent in 2021 to 13 per cent last year.
"We are expecting to receive about 5,000 foreign workers in the second quarter of this year and targeting to bring in about 10,000 foreign workers before the end of the year," he told a media briefing on the group's fourth quarter financial results which ended Dec 31, last year, here today (Feb 27).
Meanwhile, Nazrul said the group's dedication to promoting sustainability, safeguarding the environment, and upholding ethical recruitment remains unwavering.
Aligned with FGV's "no recruitment fee" policy, he said the group will reimburse the current and former foreign workers who were employed after June 27, 2019, and had to pay recruitment fees to agents or other third parties in countries of origin.
The payment to our current 23,333 foreign workers amounting to RM81.64 million will be made in three tranches between March and Sept ember this year.
"Additionally, FGV has created a sinking fund amounting to RM30 million to reimburse former workers who paid recruitment fees during their employment with FGV but are no longer employed by the company," he said.
As for the withhold release order (WRO) suspension, he said the group's independent assessor, ELEVATE, had concluded its on-site assessments.
FGV is currently implementing ELEVATE's recommendations and anticipates submitting the final report to the United States Customs and Border Protection (CBP) in the near future.
"Our vision is to deliver sustainable food and agri products to the world. We believe that by prioritising sustainability and exemplary corporate governance, we can create a better future for our planet and generations to come because if sustainability comes first, profit and growth will follow suit," he added.
FGV's net profit rose to RM1.32 billion in the financial year ended Dec 31 last year (FY2022) from RM1.17 billion the previous year, which was attributed to a higher average of crude palm oil (CPO) prices and better contribution from its logistics business.
In a filing with Bursa Malaysia today (Feb 27), the group said its revenue surged to RM25.56 billion last year compared with RM19.57 billion previously.
FGV said profit in the plantation division jumped to RM2.1 billion for FY2022 from RM1.6 billion recorded in the previous financial year.
This was mainly attributable to the higher average CPO price of RM4,832 per tonne against RM3,671 per tonne registered in the previous financial year, coupled with a higher sales volume of 19 per cent.
"The better performance was also contributed by the improved margin in the downstream and fertiliser businesses and boosted by share of profit from joint ventures amounting to RM106.08 million in the current financial year from RM17.26 million previously," it said. -- Bernama