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Kumpulan Fima Berhad (11817-V) •
Annual Report 2018
Bulking Division posted revenue of
RM53.54 million, up 12.8% compared
to last year. PBT improved by 24.6%
to RM24.91 million from RM20.0
million recorded last year. Particularly
strong growth in the edible oils,
industrial chemicals and technical fats
sub-segments throughput was the main
driver of growth for theDivision throughout
FYE2018, offsetting the decline in base
oil and latex sub-segments. Average
occupancy rate was 60.8%, which is
8.8% higher than last year, led by the
technical fats sub-segment. The edible
oils sub-segment has been strong in the
second half of the FYE2018 particularly
at our terminals in Butterworth, benefiting
from the high levels of CPO inventories
during the said period. This is in sharp
contrast to last year when the Division was
severely impacted by the effects of low
CPO production, which led to low palm
oil inventories and intense competition
between terminals, as the decrease in
overall throughput had created excess
capacity for all players.
In some ways, the market conditions
and challenges we have encountered
particularly in the last 2 years proved
instructive causing us to evaluate our
operating structures and pursue various
initiatives aimed at remaining competitive,
creating new revenue streams, and
maximizing productivity and efficiency.
During the year, the Division spent
RM1.70 million on CAPEX which has
been channeled towards upgrading of
our terminals’ infrastructure. We had also
purchased next-generation trucks and
prime movers for our freight-forwarding
and logistics arm as part of an ongoing
commitment to have more efficient
vehicles and improve driving standards
and safety. Further, to strengthen our
cost competitiveness, we had realigned
our pricing and introduced commercial
incentives that have helped deliver
growth in our volumes.
The Division has launched a project
to revive the Group’s 60,000 MT p/a
biodiesel plant which in previous years
had been leased to and operated by
a third party. This project comes at a
time when the market for biodiesel is
expanding globally amid rising crude
oil prices and increased demand for
renewable energy. The plant, which
is expected to be operational in
this current financial year once the
necessary refurbishment/replacement of
major components are completed and
pre-commissioning results meet the
desired performance requirements. This
will serves as a logical next step in a
broader strategy to expand our services
and product offerings.
Technical Fat
························
5%
Misc Income
······················
10%
Edible Oil
····························
27%
Industrial Chemicals
����������
21%
Base Oil
·····························
27%
Transportation
······················
5%
Freight Forwarding
���������������
1%
Latex
····································
1%
Oleo Chemical
······················
3%
Revenue contribution
by product
RM53.54
million
division revenue
Total Throughput
(MT)
751,651
FYE2017
951,851
FYE2018
(MT)
Edible Oil
510,049
Oleo Chemical
11,894
Technical Fats
49,278
Industrial Chemicals
165,269
Base Oil
160,413
Latex
14,412
Transportation
40,536
There have been signs of improvements
in both customer sentiment and the
broader macro-economic conditions
in Malaysia since end-2017, albeit with
some volatility along the way. Positive
as they are, both supply and demand
factors remain uncertain in view of
recent and ongoing developments in
the US and European Union especially
those pertaining to policy changes on
biofuels and other trade measures; and
the impact of these developments on
our customers’ end markets. We expect
continued uncertainty in the segments
we serve in this current financial year and
so within this context we will conduct
our business efficiently and aligned
with market trends. We believe that our
robust business model, infrastructure
and our reputation as a reliable and
cost-effective provider of services will
position us well to navigate continued
challenging market conditions along the
commercial corridors we serve, and to
capitalize on any opportunities.
Bulking Division