Golden Agri-Resources (E5H) H1 2023 earnings summary

Executive summary

• Resilient 1H 2023 results despite a sharp year-on-year CPO price decline; the integrated model and downstream performance partly offset weaker plantation results.

• EBITDA was US$478 million and net profit was US$182 million; higher-value products and services remained a strategic focus.

Financial highlights

• Revenue was US$4.876 billion, down 11% YoY; gross profit was US$882 million, down 36%.

• EBITDA was US$478 million, down 41% YoY; underlying profit was US$220 million, down 46%.

• Net profit attributable to owners was US$182 million, down 53% YoY; foreign exchange gain was US$20 million versus US$41 million.

Outlook and guidance

• CPO prices were expected to remain firm as El Niño conditions approached their forecast peak in the coming months.

• Global demand was expected to continue recovering; biofuel demand remained strong, particularly in Indonesia.