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the acquisition of Ladang Bunga
Tanjong Sdn. Bhd. which was
completed in February 2018.
The division had in Q2 FYE2019
reversed a previously recorded
impairment on property, plant
and equipment in the Group’s
Indonesian subsidiary, PT Nunukan
Jaya Lestari (“PTNJL”) as a
consequence of the Mahkamah
Agung’s decision that the
Ministerial Order revoking
PTNJL’s HGU be annulled. The
reversal of the impairment has a
positive effect of RM23.63 million
whereupon the division’s PBT for
FYE2019 would be RM32.81 million
with the inclusion of the writeback.
FFB produced by PTNJL decreased
by 6.1% to 164,769 MT (FYE2018:
175,425 MT). A lower yield per
hectare of 26.08 MT was recorded
compared to 27.53 MT last year.
Meanwhile, FFB purchased from
third parties also decreased to
49,902 MT from 60,460 MT in
the previous year. Note that FFB
production was back to normal
following to the bumper crops
recorded last year which is due to
post recovery of El-Nino.
FFB production of our Johor
estates have improved by 4.4%
to 18,708 MT, (FYE2018: 17,912
MT) due to an increase in mature
area from 875 hectares to 981
hectares. However, our average
yield per mature hectare of 20.56
per MT lower than the 21.11 per MT
achieved last year. FFB production
at our estate in Miri, Sarawak
increased by almost threefold from
4,958 MT to 14,122 MT, attributed
Amid a bearish market, the division
recorded revenue of RM118.34
million in FYE2019, 23.0% lower
than last year’s RM153.65 million
largely due to the sharp decline in
palm product prices. The average
price realized for CPO (net of
duty) registered during the year
was RM1,921 per MT compared to
RM2,342 per MT last year. Fresh
fruit bunches (“FFB”) harvested
increased slightly to 198,910 MT
compared to 198,644 MT harvested
last year with an average yield
of 20.77 per mature hectare
(FYE2018: 22.83 MT).
Meanwhile, PBT stood at RM9.18
million (before the writeback of
impairment losses which is discussed
hereinbelow), which was 22.49%
lower than the PBT of RM31.67
million achieved last year. Our
estates in Malaysia which are still in
the process of land development
or palm planting registered a total
pretax loss of RM13.87 million
compared to RM7.13 million pretax
loss recorded last year following to
Fruits transported
to mills within 24 hours
At the mill, FFB is sterilised
and pressed to extract oil
Note: The diagram above refers to our Plantation Business in Kalimantan
Crude oil is then
shipped to the
refineries
Organic Fertiliser
Compost
Plantations
fresh fruit
bunches
(“FFB”) are
harvested
Plantation Division Business Model
Immature palms
make up
4,660 ha
of the Group’s total
planted area, which
means the Group’s
crops are
projected
to rise strongly
in
coming years.
Kumpulan Fima Berhad
(11817-V)
Annual Report 2019
44