MKH Annual Report 2018

22 MKH Berhad Annual Report 2018 Plantation The following table summarises the performance of the division for the past three (3) years:- MANAGEMENT DISCUSSION AND ANALYSIS REPORT Over 15,600 hectares of planted oil palm trees are currently in harvest Production for both Estates FY2016 FY2017 FY2018 Fresh Fruit Bunches (“FFB”) (MT) 371,000* 398,000* 465,000* Crude Palm Oil (“CPO”) (MT) 85,000* 83,000* 101,000* Average CPO Price RM2,050 RM2,530 RM2,160 Oil Extraction Rate (“OER”) 22% 20% 21% PT MKH – FFB Yield (MT/hectare) 25MT 26MT 30MT Note: Figures exclude CPO purchased from outside parties for resale. * Rounded up to the nearest thousand For the year under review, the Plantation Division recorded an increase in revenue to RM263.2 million (FY2017: RM260.5 million). However, pre-tax profit declined to RM10.4 million for the financial year (FY2017: RM14.9 million), representing a decline of 30.2% that was attributable to higher unrealised foreign exchange losses of RM36.4 million (FY2017: RM7.2 million) following the weakening of Indonesian Rupiah against its borrowings in United States Dollar and Ringgit Malaysia.