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6.37% over the previous financial
year. The increase was in line with
the increase of the Group’s net
earnings.
Return on Equity (ROE)
for
FYE2019 of 8.1% (FYE2018:
4.7%) is based on total equity
of RM1,056.96 million (FYE2018:
RM999.93 million).
Capital employed is the total
amount of capital utilises to
generate profits.
Return on Capital
Employed (ROCE)
during FYE2019
improved to 10.5% from 7.7%
registered in the previous year.
Liquidity and Capital Resources
Typically, over the course of a year,
cash, short-term investments and
short-term debt may fluctuate
in order to manage the Group’s
Others
0.16
1.07
Manufacturing
1.28
2.38
Plantation
24.77
28.56
Bulking
1.70
5.05
Food
4.59
3.41
CAPEX Breakdown by Division
(RM Million)
FYE2018
FYE2019
32.50
40.47
+24.5%
Group CAPEX
(RM Million)
liquidity. The Group believes it
has sufficient operating flexibility,
cash flow, cash and short-term
investment balances to meet
future operating needs of the
business as well as any scheduled
payments of debt. The net gearing
ratio of the Group as at 31 March
2019 remained low at 0.17 times.
The Group’s
Cash and Bank
Balances
and
Short-Term Cash
Investments
stood at RM290.32
million in total, 1.1% higher than the
previous year.
Despite a reduction in revenue,
the Group continue to generate
strong cash flow. The
Net Cash
Flow Generated from Operating
Activities
recorded a surplus of
RM52.78 million (FYE2018: deficit
of RM7.52 million) resulting from
operating profit of RM104.77
million offset by net changes in
inventories balances and payment
on taxation.
The Group’s CAPEX of RM40.47
million (FYE2018: RM32.50 million)
was incurred to meet ongoing
CAPEX commitments during
the year. Notably, Plantation
division accounted for 70.6% of
the Group’s total CAPEX spend
which was largely utilised towards
plantation development works,
new planting, construction of
workers quarters and purchase/
replacements of fixed assets.
Sources of funds for CAPEX during
the year were generated internally.
FYE2018
FYE2019
Kumpulan Fima Berhad
(11817-V)
Annual Report 2019
36