MANAGEMENT DISCUSSION AND ANALYSIS REPORT FY2023 FINANCIAL HIGHLIGHTS The Group’s revenue and PBT for the financial year under review and the preceding year are summarised as follows: 2023 RM’000 2022 RM’000 Changes (%) Group Revenue 1,063,796 968,126 9.9 Segments • Property Development and Construction 587,648 538,450 9.1 • Plantation 337,981 315,817 7.0 • Hotel and Property Investment 32,518 30,034 8.3 • Others 105,649 83,825 26.0 Group PBT 117,197 171,254 (31.6) Segments • Property Development and Construction 56,585 64,723 (12.6) • Plantation 37,469 76,623 (51.1) • Hotel and Property Investment 10,470 10,472 (0.02) • Others 12,673 19,436 (34.8) For the financial year ended on 30 September 2023, despite the Group experience a growth in revenue by 9.9% amounting to RM1,063.8 million (FY2022: RM968.1 million), the Group recorded lower PBT by 31.6% amounting to RM117.2 million (FY2022: RM171.3 million) mainly due to absent of sale of land held for property development from Property Development and Construction Division and lower gross profit from Plantation Division as a result of lower average selling price of CPO and palm kernel and higher production cost. The Group recorded unrealised foreign exchange losses of RM0.5 million, as compared to the preceding year’s unrealised foreign exchange gains of RM4.7 million primarily from the Plantation Division, which resulted from the weakening of the Indonesian Rupiah (“IDR”) against Ringgit Malaysia (“RM”). As at 30 September 2023, the exchange rate stood at RM1:IDR3,300, as compared to RM1:IDR3,281 as at 30 September 2022. Excluding the unrealised foreign exchange losses of RM0.5 million (FY2022: gain of RM4.7 million), the decreased by 29.4% to RM117.7 million (FY2022: RM166.6 million) mainly due to absent of sale of land held for property development from Property Development and Construction Division, lower gross profit from the Plantation Division due to the decrease in average CPO selling price to RM3,348/MT (FY2022: RM3,847/ MT) and palm kernel selling price to RM1,589/MT (FY2022: RM2,627/MT) and increase in production costs, net changes in fair value loss on investment properties of RM0.9 million (FY2022: net changes in fair value gain on investment properties of RM2.4 million). The result was mitigated by higher CPO sales volume of 92,607MT (FY2022: 71,636MT) and higher palm kernel sales volume of 17,603MT (FY2022: 15,305MT). The segment below discusses further details of the Group’s financial performance. MKH BERHAD | ANNUAL REPORT 2023 27
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