CPO prices experienced some volatility during the year due to higher palm oil stockpiles, negative growth in planted areas, lower-priced sunflower oil as the impact of the Ukraine-Russia conflict lessened, coupled with Indonesia’s temporary lifting of its export ban along with increased domestic use of biodiesel. Consequently, the Malaysian Palm Oil Board’s average price in 2023 fell to RM3,810 per MT compared with 2022’s RM5,088 per MT. FINANCIAL PERFORMANCE The Group recorded a revenue of RM852 million, a 28% decrease from RM1.2 billion in the previous year. With profit before taxation and zakat of RM71 million in 2023, it was a 90% reduction from the previous corresponding period’s RM729 million. The Group’s results were hampered by the decline in palm product prices. However, this effect was partially alleviated by lower operating costs. Total dividend payout was 1.0 sen per share for the year ended 31 December 2023. SUSTAINING ESG With global environmental concerns on the rise, sustainability is critical for the long-term success of the sector. BPlant remains committed to delivering improved operational efficiencies and profit by upholding our Environmental, Social and Governance (ESG) Strategy Framework. Tackling critical environmental challenges such as deforestation, biodiversity loss, and greenhouse gas emissions is fundamental to how we operate. We prioritise BPlant’s sustainability values across our entire supply chain, aligning our efforts with national goals to transition towards net zero emissions. This holistic approach ensures that our sustainability practices are not only maintained but are continually advanced in line with global standards and expectations. Internally, heightening integrity and corporate governance through responsible anti-corruption and bribery initiatives remained crucial to our sustainability goals. Robust internal controls, in addition to awareness and training programmes, were utilised to maintain a culture that understands and complies with the Group’s policies, procedures, and regulatory standards. During the fiscal year, BPlant successfully obtained the ISO 37001:2016 Anti-Bribery Management Systems Certification, underscoring the efficiency of our governance practices. To further enhance our operations, the Group continued to elevate standards in labour relations with ongoing internal measures and upskilling activities implemented to empower our workforce. We place a strong emphasis on safety and wellbeing, ensuring that these priorities are integrated throughout our operations. Our active participation in Government initiatives contributed towards improving BPlant’s foreign worker supply in an industry that currently still relies on skilled foreign workers, even as we strive to make inroads in plantation mechanisation and automation, aligning with modern technological advancements to future-proof our business. With transparency and integrity in mind, we used the Global Reporting Initiative standards as a guide for the preparation of the Integrated Report 2023. To ensure our global ranking and management of ESG risks remain on track, we utilised the internationally-recognised Sustainability Policy Transparency Toolkit and the Roundtable on Sustainable Palm Oil PalmGHG calculator and GHG Protocol, among other assessment tools. OUTLOOK BPlant’s commitment to transforming into a resilient, technology-centric operation is unwavering as we enter the new financial year. Our emphasis will be centred on enhancing yield rates and maintaining the momentum of our replanting efforts through our 25-Year Replanting Programme, alongside boosting operational efficiencies with the support of the ongoing Plantations Performance Improvement Programme 2.0 aimed at refining business processes Group-wide. The new year will not be without its challenges, including temperamental weather, more stringent ESG policies and rising business cost. However, we are cautiously optimistic on delivering stronger growth. This confidence is bolstered by anticipated increases in both national CPO production and demand from key export markets, alongside improvements in labour supply thanks to supportive Government initiatives. With a proactive approach and an emphasis on sustainability and technological integration, we are focused on making steady progress as we move forward in 2024 and beyond. ACKNOWLEDGEMENT On behalf of the Board, I would like to convey our deep appreciation for the tireless contributions and guidance of the late Maj. Gen. Dato’ Seri Haji Khairuddin Haji Abu Bakar (R) J.P. during his tenure as a Director of the Company from 10 April 2014 to 7 February 2024. I am pleased to welcome to the Board, Mohammad Ashraf Md. Radzi as a Non-Independent Non-Executive Director and Jasmaliha Jaafar as an Alternate Director to Mohammad Ashraf Md. Radzi. A warm welcome as well to our new Chief Executive Officer (CEO), Datuk Zulkarnain Md Eusope. I would also like to thank Fahmy Ismail for his contributions during his tenure as Director and Acting CEO. In addition, I would also like to take this opportunity to express our humble gratitude to our valued shareholders who have been loyal supporters of BPlant. Thank you for the trust and faith you have placed in us. Furthermore, the dedication and commitment of our employees and senior management have been instrumental to the ongoing transformation of the Group. Our sincere appreciation is extended to our external stakeholders, including our financiers, business associates and partners, as well as the regulatory authorities for their support. Integrated Report 2023 027
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