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Kumpulan Fima Berhad (11817-V) •
Annual Report 2018
Letter from the Group Managing Director
Results
The diverse nature of the Group’s
operations, with exposure to various
sectors continue to provide underlying
support through the current macro-
economic conditions and highly
competitive market.
Group revenue decreased 11.8% to
RM482.46 million (FYE2017: RM547.21
million). Revenue gains from the
improved performance of Bulking,
Food and Plantation Divisions had
been materially offset by the marked
decline in Manufacturing Division’s
revenue impacted by the expiration of
a major supply contract. The Group’s
profit before tax (“PBT”) decreased to
RM80.48 million compared to RM84.67
million recorded last year. The weak
Kina has had a significant effect on the
Group’s PBT due to our PNG subsidiary,
International Food Corporation Ltd’s
exposure to the US Dollar and Malaysian
Ringgit thereby offsetting the strong PBT
contributions from Plantation Division
which increased to RM28.34 million from
a loss of RM5.96 million year-on-year
(“y-o-y”).
It is noteworthy that Food and Plantation
Divisions are continuing to drive strong
revenue growth, having collectively
contributed over 58.6% of the Group’s
revenue for the year (FYE2017: 47.7%).
The results we’re seeing today reflect
the overall soundness of our strategy. A
few years ago, we made the decision to
reposition our portfolio and expand the
Group’s plantation land banks in order to
improve the Group’s earnings profile. The
benefits of our greenfield acquisition over
recent years are gradually being realized.
As you can see, Plantation Division is
moving toward their long-term growth
with more areas attaining maturity which
gives us confidence that the investments
we have been making are the right ones
and will drive our future growth on both
our top and bottom lines.
Bulking Division has also performed to
expectations and growing its volumes,
closing the year with improvements in
both revenue and PBT y-o-y despite
margin pressures in an extremely tight
market. Shareholders may recall that last
year, Bulking was negatively impacted by
the effects of low CPO production which
inter alia led to low palm oil inventories
Revenue
FYE2017
(RM ’Million)
FYE2018
(RM ’Million)
Manufacturing
233.35
140.78
Plantation
146.87
153.65
Bulking
47.46
53.54
Food
114.26
129.27
Others
5.27
5.22
TOTAL
547.21
482.46
PBT
FYE2017
(RM ’Million)
FYE2018
(RM ’Million)
Manufacturing
59.61
25.48
Plantation
(5.96)
28.34
Bulking
20.00
24.91
Food
6.52
1.36
Others (including associate companies)
4.50
0.39
TOTAL
84.67
80.48