Golden Agri-Resources (E5H) H2 2024 earnings summary

Executive summary

• Full year 2024 saw a robust recovery, with revenue up 12% to US$10.91 billion, driven by higher CPO prices and expanded sales volume, despite weaker palm product output due to replanting and El Niño impacts.

• EBITDA increased by 12% to US$1.10 billion, with strong contributions from both upstream and downstream segments, especially in the second half.

• Net profit surged 84% year-over-year to US$365 million, and underlying profit rose 27%.

Financial highlights

• Revenue increased 12% year-over-year to US$10.91 billion; EBITDA rose 12% to US$1.10 billion.

• Net profit attributable to owners was US$365 million, up 84% year-over-year.

• Underlying profit up 27% year-over-year to US$416 million; gross profit up 11% to US$2.05 billion.

• Second half performance was notably strong: revenue up 12%, EBITDA up 23%, net profit up 156% sequentially.

• Dividend per share proposed at SGD 0.804 cents, a 31% increase, representing 18% of underlying profit.

Outlook and guidance

• Optimism for production recovery in 2025 as El Niño impacts subside, especially in Indonesia, with demand supported by Indonesia's B40 biodiesel mandate.

• Industry fundamentals remain robust, with supply growth just meeting demand.

• Global vegetable oil deficit expected to persist, with demand from growing economies and biodiesel sector.

• Targeted capital expenditure up to US$350 million in 2025 for replanting, downstream expansion, traceability, and carbon reduction.