First Resources (EB5) H2 2024 earnings summary

Executive summary

• FY2024 EBITDA rose 41.4% to US$398.9m and underlying net profit increased 56.1% to US$228.8m, supported by record production and higher palm oil prices.

• FFB harvested grew 5.9% and CPO production rose 5.5%; nucleus CPO cash cost fell to US$310/tonne from US$327.

Financial highlights

• FY2024 sales increased 5.9% to US$1,038.8m; gross profit rose 22.8% to US$445.7m and gross margin improved to 42.9% from 37.0%.

• Net profit increased 69.1% to US$245.8m; 2H net profit rose 91.9% to US$141.8m and underlying net profit rose 75.3% to US$138.2m.

• FY2024 EBITDA margin was 38.4%, up from 28.8%; 2H EBITDA increased 54.9% to US$231.1m.

Outlook and guidance

• Indonesia’s B35-to-B40 biodiesel mandate expansion in 2025 is expected to tighten global palm oil supply and support prices.

• Replanting of plantation assets acquired in December 2023 began toward end-2024; integration is expected to contribute progressively to financial performance in coming years.