A paradigm shift is in the works at FGV. Our business transformation from an oil palm heritage towards a dynamic agribusiness player is gaining strong traction. We have been taking incremental steps towards this evolution and now is the right time to accelerate growth and optimise our potential.
We are harnessing synergies across the plantation business value chain right through the parallel food marketplace, as well as relevant service sectors. Going forward, we will harness further synergies through collaboration with key stakeholders including the smallholders in ensuring the fruits of our labour reach all facets of our society.
Although the bold steps we are taking are redefining our future, our goal remains the same; To maximise value delivery to a diverse base of stakeholders as a flagbearer of Malaysian agribusiness.
FGV's Chairman Address 2021
Dear Valued Stakeholders,
Despite various challenges faced in 2021, we have recorded the best result since going public in 2012. We maintained operational parameters in line with the national average. We have products that are listed as topmost chosen FMCG brands in Malaysia, and our Logistics strength has been enhanced with new assets. We are also advancing our sustainability journey as the first food and agribusiness company in Malaysia to formalise a Climate Action Plan target with the United Nations.
It has been a dynamic year of change and growth. Notwithstanding the marked improvement in our performance this year, the Board remains committed to invest and expand towards a broader range of sustainable and synergised agribusinesses as we strive to achieve strong business performance.
The Board also advocates the fortification of sustainability strategies in every aspect of our business. To us, the new normal is not just limited to safety protocols. Business today has to be aligned with global sustainability actions and climate goals, meet expectations of greater engagement and deliver sustainable value. This calls for agile response and a responsible outlook with an eye on long-term growth prospects.
While strategies to optimise every aspect of the Plantation business continue to be prioritised and executed, the way forward for FGV Holdings Berhad (FGV) is to move into higher value-added business activities to achieve more stable returns. On this strategic journey, FGV aspires to become one of the world’s leading sustainable agribusiness players with reputed product brands, and strong distribution capabilities.
Embarking in this direction, we have made good strides during the year by Harnessing Synergies and Delivering Value.
Strategic Review
Within a marketplace of increased global regulations and impacts on commodities, a new FGV is set to emerge. One that can ride volatility in commodity prices, supported by stable returns from our reputed brands and other value-added products. An FGV that embraces the circular economy and takes the lead in sustainable agribusinesses. Last but not least, an FGV that is able to sustainably deliver its mandate to key stakeholders over the long term.
Our vision is clear and our direction is set. Adhering to our strategic roadmap, 2021 was the year for FGV to “Strengthen and Grow”, enabled by the execution of Key Strategic Initiatives across FGV’s businesses. We came together as a Group to identify ways to optimise and harness synergies in our performance. This led to good progress on several fronts and financial improvements as global CPO price continued to soar. Capitalising on our gains, we are now in a strong position to meet the set goals of our Strategic Business Plan.
FGV Holdings Berhad (FGV) stayed responsive and driven to deliver strategic achievements on significant fronts, though beset by several operational challenges, such as:
Staying resilient, we continued to gain traction in overcoming these challenges and ended the year recording an eight fold increase in Profit After Tax and Minority Interest (PATAMI) of RM1.17 billion. The results achieved put us in good standing for our journey ahead.
Statement
We have re-strategised our approach to sustainability and our Group Sustainability Framework encapsulates our latest thinking.
To continue thriving, remain relevant and competitive in an environment that is constantly changing, all businesses must transform and not be bound by but rather challenge tradition, which applies to FGV as well. Innovation will be pivotal to our transformation as we discover, through Research and Development (R&D), more effective ways to execute, new applications for our resources and develop ground-breaking products to elevate and bolster our market positioning all of which will lend to stronger, more sustained economic growth. ESG considerations are infused into our transformation and innovation efforts to promote incremental and disruptive sustainability-oriented progress.
We believe in achieving sustainable development, we should act in solidarity with the global community as part of a global partnership contributing collectively to peace and prosperity for people and the planet, now and into the future. Accordingly, we incorporate applicable Sustainable Development Goals (SDGs) and their targets into our operations to meet the growing expectations from the public. We also see this as a viable approach to help strengthen our sustainability practices and improve our business performance in the long-term. It also provides us with business opportunities, in areas including food and agriculture, energy and materials, created with the achievement of the SDGs. These are the 17 SDGs which we believe we can contribute to the most, through our sustainable business activities. These cover areas throughout our value chain.
Please refer to the Sustainability Report on the mapping of relevant SDGs to our Material Matters.
Explore our Annual Integrated Report to find out more about the Company's strategy, highlights of the year and financial performance for the year. Just click on your preferred format below
