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Felda Global’s 2Q15 Net Profit Plunges 70%
Malaysia Daily Bulletin | 25 August 2015
By:
  • Felda Global Ventures Holdings recorded a 69.7 percent plunge in net profit to RM46.1 million for 2Q15, mainly due to lower earnings from palm-related segments as a result of lower average crude palm oil (CPO) prices. On the other hand, revenue for the quarter rose 8.1 percent to RM4.2 billion.
  • For the six-month period, earnings dived 83.2 percent to RM49.7 million, while turnover fell 6.5 percent to RM6.9 billion. 1H15 fresh fruit bunch production fell 9 percent to 2.2 million tonnes.
  • For its outlook, the group aid that the oil palm industry remained challenging, with a slowdown in the China economy having wide-ranging consequences for the global oil and commodities markets.

Significance: The group also noted that it faces stiff competition from soybean oil, which has experienced higher production and lower prices. Market remains uncertain and no recovery in the market is expected in 2H15, as such, Felda expects its performance for the remainder of the year to be much in line with the soft market condition.


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