Fima aims for 25% revenue growth in FY09

plantation division namely NJL, an 80% owned subsidiary, contributed RM4.0 million pretax profit to the overall results of the Group. During the financial year under review, plantation mature area was 4,221.8 hectares and 41,811 mt of fresh fruit bunches (“FFB”) was produced whilst a total of 4,990 mt FFB was sourced from third parties. During the same period, production of crude palm oil (“CPO”) and palm kernel (“PK”) was 12,155 mt and 1,984 mt respectively."
---from 2008 march annual report.



Roslan Hamir

Indonesian oil palm ops expected to contribute more

KUALA LUMPUR: Fima Corp Bhd hopes to achieve 25% growth in revenue to RM220mil for the financial year ending March 31 (FY09), backed by higher contribution from its oil palm plantation in Indonesia.

Managing director Roslan Hamir said the company would continue to bank on the production and trading of security and confidential documents as well as its palm oil production to be the main revenue drivers in FY09.

“However, we expect higher quantum of revenue growth from the oil palm division in view of higher fresh fruit bunch production,” he told reporters after the company AGM yesterday.

“We aim to produce at least 25,000 tonnes of crude palm oil (CPO) in FY09 compared with 9,000 tonnes previously,” Roslan said, adding that 80% of its CPO from Indonesia was sent back to Malaysia.

According to him, the company would enjoy a higher yield as most of the oil palm trees were expected to mature by year-end.

Fima, which has an 80% stake in palm oil-based Indonesian company PT Nunukan Jaya Lestari, also expected revenue contribution from its oil palm division to increase to RM60mil in FY09 from RM22mil in FY08, said Roslan.

On landbank expansion, he said Fima was in no hurry to expand now as it still had 7,500ha to be developed. It would, however, be eyeing Indonesia for future expansion.

Meanwhile, he said, escalating raw material prices would continue to affect the company’s gross profit margin by 2% to 3%.

On the fluctuating CPO price, Roslan said: “We are still at a comfortable level if the price remains above RM2,500 per tonne. I believe that CPO would average at RM3,000 for the remaining second half of the year.”

On the company’s budget wish list, Roslan said he hoped the Government would focus on the small and medium enterprises and allocate more incentives for manufacturers in view of inflation and rising operating costs.

For its first quarter ended June 30, Fima posted 129.3% jump in net profit to RM14.01mil and 59.05% increase in revenue to RM63.89mil compared with the previous corresponding period.

Currently, its production and trading of security documents division contributes 60% to the company’s revenue.

For FY08, Fima registered 12.4% increase in net profit to RM176.79mil and 11.04% rise in revenue to RM176.79mil. For FY08, it will pay total net dividend per share of 11.93 sen.