Golden Agri-Resources (E5H) H1 2026 earnings summary

Executive summary

• Achieved record first half 2026 revenue of US$6.6 billion, up 7.3% year-over-year, driven by stronger market prices and volume expansion.

• Net profit attributable to owners rose 4.4% to US$167.2 million, supported by lower cost of funds and foreign exchange gains.

• EBITDA declined 1.9% to US$555.6 million due to margin pressures and higher operating expenses, though margins remained healthy in both upstream and downstream segments.

• Robust quarterly performance supported by sales volume growth and higher margins, despite increased selling and administrative expenses.

Financial highlights

• First half revenue up 7.3% to US$6.6 billion; gross profit increased 19% to US$1,034 million; EBITDA down 1.9% to US$555.6 million; net profit up 4.4% to US$167.2 million.

• Quarterly net profit surged 180% sequentially, supported by foreign exchange gains and lower cost of funds.

• Operating profit rose 19.4% to US$398.0 million; profit before tax grew 27.4% to US$319.8 million.

• Net financial expenses decreased to US$69.2 million from US$82.1 million, reflecting lower borrowing costs.

• Net cash generated from operating activities dropped to US$163.8 million from US$632.1 million, mainly due to increased working capital requirements.

Segment performance

• Plantations and palm oil mills revenue fell 2.3% to US$1,157 million; EBITDA declined 3.5% to US$309.3 million, with stable margins and higher oil extraction rate mitigating lower FFB production.

• Palm, laurics and others revenue rose 7.3% to US$6,543.8 million; EBITDA was stable at US$246.5 million, with sales volume up 2% despite margin pressure from higher transport and export costs.

• FFB and palm product output decreased year-over-year; 67% of trees in prime producing years, 18% in immature/young segment, supporting future growth.

• Downstream margin slightly down to 3.8% amid unfavorable market conditions.