FGVPI targets RM1bil profit before tax by 2030
BANGI: FGV Palm Industries Sdn Bhd (FGVPI) is targeting RM1 billion in profit before tax by 2030, driven by a strategic shift in its business model and improved operational productivity.
FGV Palm Industries Sdn Bhd (FGVPI) aims to achieve RM1 billion in profit before tax by 2030, as company CEO Hamdan Ismail announced at a recent event. The Malaysian palm oil mill operator is transitioning from a primary processor to a buy fruit, sell oil model, which will commence on October 1. This move is expected to enhance FGVPI's profitability and position it as a high-value entity in the industry.
FGVPI's strategic roadmap includes incremental profit-before-tax targets: RM400 million in 2027, RM600 million in 2028, RM800 million in 2029, and the RM1 billion goal in 2030. The company has allocated RM45 million for human capital development, aiming to boost its 5,800 employees' productivity by 30%. Hamdan attributes this ambitious growth to the company's increasing operational efficiency and oil extraction rate, which stands at over 21% across all its mills.
FGVPI maintains a palm kernel recovery rate above the industry average of five percent, a target FGVPI will strive to surpass to increase returns to Federal Land Development Authority (FELDA) settlers. This focus on operational excellence and settler welfare is essential for FGVPI's continued success and competitiveness in the palm oil industry.
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