, Singapore

Will First Resources be able to sustain the recovery in its fresh fruit bunch yields?

It full-year FFB output moderated to a 6.4% decline.

Agribusiness First Resources saw a decent recovery in it fresh fruit bunch yields in 4Q16, easing its 14% decline in output during 9M16 to only 6.4% for the whole year.

According to RHB, First Resources would be able to grow its FFB output by 8.3% going into this year, as productivity returns to normal.

"Going forward, we expect First Resources’ FFB growth to return to normal from FY17, as its trees fully recover from the El Nino impact," RHB noted.

It added, "We expect the company to register FFB growth of 5-10% pa for FY17-18, as there is not much contribution from new areas coming into maturity over the next few years." 

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