Kencana Agri (BNE) investor relations material

Executive summary

• H1 2026 revenue rose 27.1% to US$110.8m and net profit increased 20.6% to US$11.8m; gross, net profit and EBITDA margins narrowed.

• Higher sales volumes and firmer selling prices supported growth, while higher input and third-party sourcing costs weighed on gross margin during Bangka replanting.

• Net debt to equity improved to 1.8x from 2.3x at FY2025-end.

Financial highlights

• Revenue was US$110.8m, up 27.1%; gross profit was US$32.1m, up 13.7%; EBITDA was US$33.1m, up 10.5%; and net profit was US$11.8m, up 20.6%.

• Profit before tax was US$18.9m, up 43.6%; income tax expense rose to US$7.1m and included a US$2.3m prior-year under-provision.

• Gross margin was 29.0%, down from 32.4%; net profit margin was 10.6%, down 0.6pp, and EBITDA margin was 29.9%, down 4.5pp.

• At constant 1H 2025 exchange rates, revenue, gross profit and net profit would have been ~US$116.4m, ~US$33.7m and ~US$12.4m, respectively.

• Total comprehensive income was US$8.3m versus US$9.7m, including a US$3.5m foreign-exchange translation loss versus US$0.1m in H1 2025.

Outlook and guidance

• Indonesia’s B50 biodiesel programme is expected to support domestic CPO demand; effects of the DSI export-governance framework depend on its evolving scope and implementation.

• Priorities include operational efficiency, disciplined cost management, prudent control of fertiliser and other inputs, and optimisation of agronomic practices.

• Below-normal rainfall associated with El Niño could affect FFB yields and CPO production, depending on the location, duration and severity of dry conditions.