Annual Report 2012 - IOI Group

OPERATIONS REVIEWFor the financial year under review, the Group’s estates produced a total of 3.186 million MT of FFB, about 3.3% lower than the previousyear mainly due to unfavourable weather conditions and shortage of workers.The average FFB yield per mature hectare for FY2012 was also approximately 2% lower compared to previous financial year. With lower FFByield for FY2012 at 23.18 MT (FY2011 – 23.70 MT) per mature hectare and slightly higher oil extraction rate of 20.95% (FY2011 – 20.88%),the average CPO yield has decreased to 4.86 MT per mature hectare as compared to a yield of 4.95 MT per mature hectare for FY2011.The Group’s best performing estate was Luangmanis Estate in Sabah which achieved a yield of 6.71 MT of CPO per hectare for FY2012.The number of estates that managed to achieve oil yields of more than 6 MT per mature hectare has increased from 4 estates in FY2011to 5 estates for the financial year under review.For FY2012, the Group’s plantation division recorded an operating profit of RM1,548.2 million, an increase of 3.4% from FY2011’sRM1,497.8 million. The increase in profit was due mainly to higher cpo price realised of RM3,135/MT (FY2011 – RM2,945/MT), moderatedby lower FFB production.Cess and tax incurred2012RM’0002011RM’000MPOB cess 8,687 8,931Windfall profit levy 21,168 9,898Sabah sales tax 104,288 109,727134,143 128,556Above: FFB being deliveredto the mill.Right: Estate workerharvesting FFB with a chisel.30IOI CORPORATION BERHADAnnual Report 2012