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PBT
FYE2019 FYE2020
RM
Million
RM
Million
Manufacturing 30.56
25.99
Plantation
32.81
(20.55)
Bulking
43.13
35.29
Food
8.33
14.92
Others
(including
Associated
Companies
0.06
(3.82)
Group PBT
114.89 51.83
Manufacturing division’s weaker
performance was impacted by a
combination of market dynamics
namely, the continuous secular declines
in volumes as well as changes in order
patterns for certain product segments.
Further, strong competition within the
security printing industry has served
to further increase pressure on the
division’s profit margins.
Plantation division’s results were
impacted by several factors. In addition
to the impairment losses on PPE and
ROU assets noted earlier, PTNJL could
not effect any crude palm kernel oil
(“CPKO”) sales in the first three quarters
of FYE2020 due to regulatory issues
related to the plant’s operating licence
thus resulting in an acute 73.6% decline
in the quantity of CPKO sold year-on-
year. Moreover, operating costs were
higher due primarily to costs incurred
towards the development of the Group’s
Malaysian estates which are mainly in the
early stages of development. Partially
offsetting these negative factors were
the favourable increase in the volume of
FFB harvested by the Group’s Malaysian
estates. The Group’s crop is rising as
more areas attain maturity. This is a
consequence of the development of our
estates in Kelantan and Terengganu in
the last few years which we hope would
be further augmented by the acquisition
or development of new plantation
assets.
On 27 November 2019, it was
announced that the judicial review
application by the Menteri Agraria dan
Tata Ruang/Kepala Badan Pertanahan
Nasional (“BPN”) against PTNJL, was
allowed by the Mahkamah Agung vide
its written decision which was received
by PTNJL’s solicitors on 27 November
2019 (“the Decision”). Subsequently
on 28 November 2019, PTNJL filed
a civil suit in the Pengadilan Negeri
Jakarta Selatan against BPN and PT
Adindo Hutani Lestari. The President
of Indonesia and Menteri Lingkungan
Hidup dan Kehutanan Republik
Indonesia been named as co-defendants
in the said suit. PTNJL is seeking legal
recognition of its rights over land title
Hak Guna Usaha No. 01/Nunukan
Barat (“HGU”) and to restrain the local
authorities from issuing any new licences
or approvals to any parties on or within
the HGU. PTNJL is also seeking an order
from the court to stay the enforcement
of the Ministerial Order dated 25 July
2016 pending full and final determination
of the matter by the Indonesian courts.
On 23 January 2020, PTNJL had filed
an application at the Jakarta State
Administrative Court (or Pengadilan Tata
Usaha Negara Jakarta) for judicial review
and reversal of the Decision. The suits
are still ongoing at the time of writing
and as such I am not at liberty to provide
any further commentary on the details
of them other than to assure you that
the Board is giving this matter its fullest
attention and that PTNJL will continue to
vigorously defend its position.
Our Bulking division achieved solid
performance in FYE2020, having enjoyed
good capacity utilization and higher
throughputs on the back of new product
portfolio and expanded capacity. The
division is now proceeding with plans
to expand the capacity of its terminal
in North Port, Port Klang, by a further
20,440 cbm thus ensuring that they
are well placed to respond to growing
demand in the near future. Meanwhile,
our biodiesel segment’s performance
came in below expectations as the plant
has yet to achieve optimal utilisation rate
due to some restarting issues.
Food division’s revenue improved
by 1.1% compared to last year. PBT
increased significantly y-o-y mainly
attributable to stronger sales generated
from higher margin products coupled
with lower direct costs and higher net
forex gains. The division has made
notable progress in driving efficiency
gains and cost savings across their
supply chain through various initiatives
undertaken during the year. The division
has also successfully expanded into new
product categories, creating potential
for market share gains and enhanced
earnings in the longer term.
kumpulan Fima Berhad
(197201000167)(11817-V)
Annual Report 2020
23