First Resources (EB5) H1 2024 earnings summary

Executive summary

• EBITDA rose 26.3% to US$167.8m and underlying net profit increased 33.8% to US$90.6m, supported by higher production and improved processing margins.

• FFB harvested grew 5.9% to 1,648,455 tonnes and CPO production increased 5.8% to 430,246 tonnes YoY.

• The H2 peak crop season is expected to increase FFB, CPO and palm kernel availability for downstream processing.

Financial highlights

• Revenue rose 1.9% to US$457.2m; gross profit grew 18.9% to US$186.7m and gross margin expanded to 40.8% from 35.0%.

• Operating profit increased 48.9% to US$143.5m and profit before tax rose 48.0% to US$137.5m; net profit was US$108.6m, up 46.7%.

• Profit attributable to owners rose 45.4% to US$103.9m; underlying net profit, excluding biological-asset fair-value changes, increased 33.8% to US$90.6m.

• Basic and diluted EPS were 6.67 US cents, versus 4.56 US cents in 1H2023.

• Net cash from operating activities was US$112.4m; cash and cash equivalents ended at US$102.9m, down US$5.7m during the half.

Outlook and guidance

• Indonesian biodiesel mandates and the DMO policy are expected to support domestic palm oil demand; competing oils such as soy may pressure export demand.

• Weather, global economic conditions and geopolitical developments remain key variables for production and commodity prices.