Major Palm Oil Manufacturer Says Q1 Net Profit Down 25%
Malaysia's Felda Global Ventures Bhd, the world's largest crude palm oil producer, on Monday said its net profit fell 24 percent in the first quarter from the same time last year amid lower prices for the commodity.
FGV reported net a profit of 1.3 million ringgit (€280,000) for the quarter that ended in March, versus 1.7 million ringgit in the same period the year before.
Revenue dropped to 3.6 billion ringgit, versus 4.3 billion ringgit last year.
The company said it expected its 2018 results to be "satisfactory" despite "challenges" in the market.
FGV's plantation business recorded lower profits in the quarter despite higher sales volumes, hit by weaker average crude palm oil prices compared with the corresponding period a year ago, the company said in a statement released on the local stock exchange in the midday break.
FGV's shares were trading 3.1-percent higher before the break, outperforming the benchmark index which was down 0.6 percent.
Benchmark palm oil prices were last down 1.6 percent at 2,415 ringgit a tonne.
Crude palm oil prices averaged 2,487 ringgit in the first quarter of 2018, down from 2,900 ringgit last year.