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F i m a C o r p o r at i o n B e r h a d ( 2 1 1 8 5 - P ) •
A n n u a l R e p o r t 2 0 1 8
registered 48.4% of gross profit margin against 43.2% last year
due to higher yield per hectare coupled with lower depreciation
and amortisation on property, plant and equipment and
biological assets.
At the
PAT
level, profit increased to RM42.21 million from
RM35.01 million due to lower tax expenses during the year.
Taxation charged for the year decreased to RM21.09 million
from RM26.25 million recorded in the previous year. In FYE2017,
the Group recorded higher effective tax rate of 42.9% as
compared to effective tax rate of 33.3% during the year mainly
due to certain expenses such as impairment on property, plant
and equipment and biological assets not being allowed for tax
deduction.
Group Profit Attributable to Equity Holders
of the Company
for the period amounted RM36.11 million (FYE2017: RM37.72
million) representing a decreased of 4.3%. Basic earnings per
share was 14.98 sen based on weighted average 241.12 million
shares (FYE2017: 15.64 sen based on 241.12 million shares).
Return on Average Equity (ROAE)
for FYE2018 was 7.3%
(FYE2017: 6.0%) is based on an average shareholders’ equity
of RM576.04 million (FYE2017: RM584.59 million).
Capital employed is the total amount of capital utilises to
generate profits.
Return on Average Capital Employed
(“ROACE”)
during FYE2018 improved to 10.6% from 10.1%
recorded in the previous financial year.
The Group’s
Cash and Bank Balances and Short Term Cash
Investments
stood at RM209.48 million in total, 37.7% lower
from a year ago of RM336.31 million mainly due to net cash
used in investing and financing activities namely, payment
of dividends amounting to RM50.57 million, repayment of
borrowings and net purchase consideration of the Group new
subsidiary FCB Eastern Plantations Sdn Bhd (formerly known
as Java Plantations Sdn Bhd) amounting to RM29.03 million
and RM4.56 million, respectively, CAPEX of RM9.91 million and
net cash used in operating activities of RM34.30 million.
Net Cash Flow Generated from Operating Activities
recorded deficit of RM34.30 million despite generating
operating profit of RM61.93 million resulting from net changes
in receivables and payables balances. Receivables recorded
in FYE2017 compared to FYE2018 by RM24.82 million due
to payment received towards end of FYE2017. The proceeds
were subsequently used to pay various suppliers, which as a
consequence reduced the Group’s trade and other payables
by RM43.78 million in FYE2018. The Group also paid RM21.39
million in taxation expenses.
Shareholders’ Equity
as at 31 March 2018 stood at RM546.65
million, declined by RM14.74 million or 2.6% from the previous
financial year mainly due to payment of dividends and
translation of forex losses incurred during the year totalling
RM42.20 million and RM8.58 million, respectively.
MANAGEMENT DISCUSSION AND ANALYSIS
Share of Results of Associate
, Giesecke & Devrient Malaysia
Sdn. Bhd. declined by 36.9% to RM1.70 million (FYE2017:
RM2.69 million).
Capital Expenditure (“CAPEX”)
The Group maintained a disciplined approach to CAPEX during
the year. Total CAPEX decreased from RM13.98 million last
year to RM9.91 million and comprised of property, plant and
equipment (RM3.77 million) and biological assets expenditure
(RM6.14 million). Sources of funds for CAPEX during the year
were generated internally. CAPEX incurred during the year was
largely towards plantation development works, new planting of
oil palm and construction of worker’s quarters.
capex by Country (RM’ million)
MALAYSIA
INDONESIA
11.20
2.78
13.98
9.91
8.20
1.71
FYE2017
FYE2018
capex by Division (RM’ million)
Manufacturing
Others
Plantation
FYE2017
FYE2018
12.10
8.51
1.81
1.28
0.07
0.12