Felda Global Ventures Holdings Bhd (FGVH) reiterated that it has been profitable - citing pre-tax profits of RM203 million in 2009 - its first full year of operations - and RM366 million in 2010.

In a statement released yesterday, it said these facts can be gleaned from its accounts for the financial years of 2009 and 2010 which have been audited and filed with Suruhanjaya Syarikat Malaysia (SSM) in accordance with existing regulations.

Responding to an earlier report in Malaysiakini - ‘PAS to unveil more Felda Global Ventures failures' - FGVH said that as a large and highly diversified agribusiness group, it has more than 80 active companies in 12 countries.

These comprise a wide portfolio of investments mainly in the upstream and downstream business of palm oil.

Given its business model, it is not unusual that the companies within the group report varying levels of performances depending on various factors. However, the group has continued to record profits.

Its Group President, Sabri Ahmad, said in a statement that as a global business with operations on four continents, FGVH is exposed to world economic conditions and the specific business environment in the countries it operates in.

This includes the country's financial health, its economic policies and financial structures, even exchange rates.

Sabri added that several FGVH businesses commenced as greenfield projects. As to be expected, start-up businesses require time to realise value for the group.

Understandably, they would only provide returns on the investments after a certain period. The palm oil business by itself is subject to a certain volatility due to fluctuations in Crude Palm Oil prices.

"As a large conglomerate, this is something we have to manage judiciously in order to ensure the sustained financial well-being of the Group. However, we are happy that we continue to achieve profitability," said Sabri.