Strong Financial Performance Driven by Market Conditions
FGV Holdings Bhd has reported a significantly improved financial performance for the second quarter and first half of 2025, demonstrating strong growth despite a dynamic market. For the quarter ending June 30, 2025, the company’s net profit surged to RM136.88 million, a substantial increase from the RM86.38 million recorded in the same period a year ago. This impressive result was accompanied by a rise in revenue to RM5.79 billion, up from RM5.52 billion previously. The primary catalyst for this positive momentum was a higher average realized price for crude palm oil (CPO), which climbed to RM4,218 per tonne compared to RM4,103 a year earlier. While the overall revenue grew by a robust 5.0 percent, the company acknowledged that contributions from some of its downstream businesses, particularly within the oils and fats division, were softer during the quarter. The positive trend was consistent for the first six months of the year, with net profit rising to RM173.36 million from RM72.89 million and revenue improving to RM10.83 billion from RM10.06 billion in the corresponding period last year, reinforcing the company’s strong trajectory.
Strategic Delisting Paves the Way for a New Chapter
Looking ahead, FGV Holdings is poised for a new and strategic phase in its corporate journey. The group is set to be officially delisted from the Main Market of Bursa Malaysia on August 28, 2025. This move is not an end but a purposeful strategic repositioning designed to provide the company with greater operational agility and allow for a closer, more streamlined alignment with its major shareholder, the Federal Land Development Authority (FELDA). This transformation will enable FGV to sharpen its focus on its core mission as a premier agribusiness and a leading food company for Malaysia. The group is optimistic about its prospects for the second half of the year, anticipating stronger fresh fruit bunches (FFB) production. This positive forecast is supported by its ongoing commitment to enhancing operational excellence, expanding its portfolio of value-added products, and strengthening its market presence. By optimizing its supply chain and overall capacity, the company is preparing to capitalize on future growth opportunities in a more flexible and integrated manner.
A People-Centric Vision for Long-Term Value
As FGV Holdings embarks on this new chapter, its strategic focus is built on a clear, three-pronged framework centered on productivity, growth, and people. According to group CEO Fakhrunniam Othman, productivity is about fulfilling the company’s 2025 commitments through disciplined operational excellence and the implementation of robust agricultural practices. Growth, the second priority, will be fueled by a multifaceted approach that includes product diversification, expanding into new markets, adopting a circular economy model, and fostering strategic collaborations. The company is also committed to its energy transition journey and harnessing the power of digitalization to drive efficiency and innovation. Crucially, the final and most important pillar is “people,” reflecting the company’s belief that its success is fundamentally tied to its workforce. Othman emphasized that a culture of unity, shared purpose, and resilience among employees and stakeholders is what will ultimately define the company’s achievements and ensure it continues to build on its legacy and deliver long-term value for all.
