AEP Plantations (AEP) H1 2026 earnings summary

Executive summary

• Completed acquisition of PT AEP Pinago Plantations Tbk, adding 14,300 ha of mature plantation and increasing total planted area by over 25% to 87,392 ha.

• Acquisition funded entirely from existing cash; $25.9 million returned to shareholders via dividends and buybacks.

• Advanced construction of ninth mill at KAP Estate and completed acquisition of PT Jaya Jadi Utama post-period.

Financial highlights

• Revenue rose 8.3% year-over-year to $249.7 million for the six months ended 30 June 2026.

• Gross profit remained flat at $62.8 million; profit before tax up 5.1% to $65.8 million, including a $9.1 million gain on bargain purchase.

• EPS increased 3.1% to 12.71 cents; profit after tax was $48.9 million, nearly unchanged year-over-year.

• Cash and equivalents fell to $109.5 million from $244.7 million, mainly due to the Pinago acquisition.

• Net assets at $579.4 million, slightly down from $584.8 million, impacted by FX losses.

Outlook and guidance

• CPO prices expected to remain firm for the rest of 2026, supported by food and energy demand and Indonesia's biodiesel program.

• Full six months' trading from Pinago to benefit results; confident in meeting full-year market expectations.

• Monitoring regulatory changes and pursuing brownfield opportunities in Indonesia.