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Fima CORPORATION Berhad
(197401004110) (21185-P) •
Annual Report 2020
30
GROUP PBT
RM18.13
million
77.2% Decrease Y-o-Y
(FYE2019: RM79.48 million)
FYE2019 Contribution
FYE2020 Contribution
Variance
Variance
RM Million
% RM Million
% RM Million
%
Manufacturing
30.56
38.5
25.99
143.4
(4.57)
(15.0)
Plantation
47.43
59.7
(10.62)
(58.6)
(58.05)
(122.4)
Property Management
1.45
1.8
3.72
20.5
2.27
156.6
Share of Results of Associate
3.73
4.7
1.96
10.8
(1.77)
(47.4)
Others
(3.69)
(4.7)
(2.92)
(16.1)
0.77
(20.9)
Group Results
79.48
100.0
18.13
100.0
(61.35)
(77.2)
The Group’s PBT decreased by 77.2% to RM18.13 million from
RM79.48 million recorded in the previous financial year driven by
lower contribution from Plantation and Manufacturing divisions.
The decline is mainly due to impairment losses on property,
plant and equipment (“PPE”) and right-of-use (“ROU”) assets in a
subsidiary, PT Nunukan Jaya Lestari amounting to RM17.79 million
against write back of impairment losses amounting RM23.63
million recorded in FYE2019. Without these impairments, the
Group’s PBT would be RM35.92 million, 35.7% lower than last year.
Plantation division recorded a loss of RM10.62 million compared
to PBT of RM47.43 million in the previous year primarily due to the
impairment loss on PPE and right-of-use assets “referred to above”.
Manufacturing division’s PBT was lower by 15.0% or RM4.57 million
y-o-y due to the less favourable sales mix, lower sales volumes and
contraction in margins on certain product segments.
Profitability
The Group’s
Retained Earnings
in FYE2020 declined to RM441.99
million compared to the previous financial year (FYE2019:
RM460.34 million). The decrease was in tandem with lower profits
recorded by the Group and lower profit attributable to the equity
holders of the company from RM57.45 million last year to RM11.74
million compared to dividend paid RM29.97 million.
Gross Profit
for the Group declined by 18.8% y-o-y to RM80.79
million from RM99.48 million on the back of lower revenue and
increase in
Cost of Sales
. Cost of Sales amounted to RM162.34
million in FYE2020, up 11.8% compared to the previous year
primarily due to the higher maintenance and cultivation
expenditure recorded by the Plantation division. Manufacturing
division also recorded higher cost of sales of RM93.95 million
against last year’s RM91.69 million.
The Group’s
Gross Profit Margin
is lower by 7.4% from last year
(FYE2019: 40.7%) and this is corresponding to the above.
On the back of lower revenue and PBT,
EBIT
decreased
significantly by 76.8% from RM79.65 million recorded in the
previous year to RM18.50 million.
Taxation Expenses
decreased to RM9.32 million from RM14.15
million recorded in the prior year, primarily due to the reduced
PBT. Higher effective tax rate for FYE2020 of 57.7% compared to
35.2% in FYE2019 mainly due to underprovision of prior years tax
by our Plantation subsidiary, higher loss incurred by our Malaysian
estates and higher non-allowable expenses.
With a lower contribution of profit in FYE2020 mainly due to the
impairment loss on impairment loss on PPE and right-of-use
assets,
PAT
was RM8.81 million compared to RM65.33 million in
the prior year.
Group Profit Attributable to Equity Holders of the Company
in
FYE2020 amounted to RM11.74 million (FYE2019: RM57.45 million),
representing a decrease in earnings per share to 4.90 sen (FYE2019:
23.90 sen) based on a weighted average of 239.75 million shares
(FYE2019: 240.39 million shares).
With the decrease of PAT, the Group recorded
ROE
of 1.6% for
FYE2020 based on total shareholder’s equity of RM565.99 million
(FYE2019: RM597.16 million) compared to 10.9% recorded in the
previous year.