Golden Agri-Resources (E5H) H2 2023 earnings summary

Executive summary

• FY2023 results normalised after record-high CPO prices in 2022; H2 EBITDA rose 6% from H1 to US$508m, with full-year EBITDA of US$986m and a 10% margin.

• Strong upstream performance and consistent downstream results supported the integrated value chain, while lower CPO prices weighed on annual revenue and profit.

Financial highlights

• FY2023 revenue was US$9.756bn, down 15% YoY; lower CPO prices were partly offset by higher sales volumes.

• Gross profit was US$1.851bn, down 39% YoY; EBITDA was US$986m, down 46% YoY.

• Underlying profit was US$328m, down 64% YoY; net profit attributable to owners was US$198m, down 75% YoY.

• H2 revenue was US$4.880bn, essentially flat QoQ; gross profit rose 10% to US$969m and EBITDA rose 6% to US$508m.

• H2 underlying profit was US$108m versus US$220m in H1; net profit was US$15m versus US$182m in H1.

Outlook and guidance

• Palm oil supply in 2024 is expected to be constrained by El Niño-related water deficits and low seasonal production in H1; palm oil was trading at a premium to other vegetable oils.

• Long-term industry outlook remains positive, supported by food-staple demand and growing use in biodiesel and biomass alternatives.

• Outlook remains cautious amid geopolitical tensions and volatility in the global economy.