Golden Agri-Resources (E5H) H1 2024 earnings summary

Executive summary

• Revenue rose 5.4% year-over-year to US$5,141.9 million on higher merchandising sales volume despite softer CPO prices; EBITDA increased 3.6% to US$494.6 million.

• Underlying profit fell 14% to US$189 million; net profit attributable to owners dropped 43.8% to US$102.4 million, reflecting higher financial expenses, unrealised FX losses and increased tax.

• Quarter-on-quarter, EBITDA rose 14%, underlying profit 40% and net profit 76%, alongside improved plantation output.

• No interim dividend was declared for the half year ended 30 June 2024.

Financial highlights

• Gross profit increased 4.3% to US$919.99 million; operating profit rose 16.9% to US$234.2 million.

• Q2 revenue was US$2,580 million, up 1% quarter-on-quarter; gross profit rose 15% to US$493 million and EBITDA increased 14% to US$263 million.

• Q2 underlying profit rose 40% quarter-on-quarter to US$110 million; net profit increased 76% to US$65 million.

• H1 foreign exchange loss was US$48.3 million, versus a US$20 million gain in H1 2023; net profit was US$102.4 million versus US$182 million.

• Net cash from operating activities declined to US$93.1 million from US$262.8 million in H1 2023.

Outlook and guidance

• 2024 capital expenditure planned up to US$300 million, focused on replanting, downstream expansion, logistics and sustainability initiatives.

• Replanting target for the full year is 20,000 hectares; 10,800 hectares were replanted in H1.

• Priorities include improving long-term yields and cost efficiency, technological innovation, and developing value-added products.

• Plantation output expected to continue improving in H2.