Managing Director's Management Discussion and Analysis

Dear Shareholders,

On behalf of the Board of Directors of Rimbunan Sawit Berhad, it is my privilege to put forward to you the Annual Report of our Company and Group for the financial year ended 31 December 2023.

As of December 31, 2023, the Group reported a revenue of RM507.8 million, marking a decline from RM675.9 million on December 31, 2022. This downturn is primarily attributed to a decrease in the average selling prices of Fresh Fruit Bunches (FFB), Crude Palm Oil (CPO), and Palm Kernel (PK) by 28.7%, 23.8%, and 33.9%, respectively, reaching RM661, RM3,725, and RM1,862 per metric tonne. Despite a noteworthy 18.5% increase in FFB production volume, totaling 250,750MT compared to 211,681MT in the corresponding period of 2022, the decline in selling prices contributed to the overall revenue decline.

The Group reported a gross profit of RM19.4 million, profit before tax of RM17.3 million profit after tax of RM13.0 million and EBITDA of RM100.2 million. This mainly due to the Group has undertaken aggressive cost control measures, innovative sustainable approaches in operations, and the strategic disposal of Jayamax and Selangor estates. Additionally, a boost in other income by RM50.0 million further contributed to the higer profit after tax. The boost was mainly due to the impairment review triggered by strategic disposal of Selangor and Jayamax estate, resulting to impairment loss no longer required on property, plant and equipment.