Golden Agri-Resources (E5H) Q1 2023 TU earnings summary

Executive summary

• Q1 2023 performance moderated after a record 2022 as CPO prices normalized; expanded sales volume partly offset lower selling prices.

• Integrated operations helped cushion lower prices: downstream volume growth partly compensated for lower plantation output and higher fertilizer costs.

Financial highlights

• Revenue was US$2.539B, down 6% YoY; gross profit was US$487M, down 28%.

• EBITDA was US$247M, down 34% YoY, with a 9.7% margin; underlying profit was US$112M, down 35%.

• Net profit attributable to owners was US$92M, down 51% YoY; FX gain was US$11M versus US$26M, and deferred tax expense was US$3M.

• Underlying profit excludes net effects of fair-value gains on biological assets, bearer-plant depreciation, FX gains and deferred tax expense.

Outlook and guidance

• El Niño is anticipated later in 2023; fire monitoring was stepped up, and more than 100 villages participate in community fire prevention.

• Targeting all palm volumes in the NDPE IRF “Delivering” category by 2025; traceability to plantation in Indonesia reached ~98%.

• Robust food, industrial and bio-energy consumption and biodiesel mandates support demand; the Indonesian B35 mandate remained on track.