Golden Agri-Resources (E5H) Q1 2024 TU earnings summary

Executive summary

• Q1 2024 revenue rose 1% YoY to US$2.56 billion as expanded sales volume partly offset lower CPO prices.

• EBITDA was US$231 million, with a margin above 9%; underlying profit fell 29% to US$79 million and net profit fell 60% to US$37 million.

• Lower plantation output was partly offset by downstream volume growth; the financial position remained robust, with net debt down 31% from year-end.

Financial highlights

• Revenue was US$2,562 million, up 1% YoY; gross profit was US$427 million, down 12%, and EBITDA was US$231 million, down 6%.

• Underlying profit was US$79 million, down 29% YoY; net profit attributable to owners was US$37 million, down 60%.

• FX loss was US$22 million versus an US$11 million gain in Q1 2023; deferred tax income was US$4 million versus a US$3 million expense.

Outlook and guidance

• Focus remains on adding value, improving margins, optimising productivity through agri-science and technology, and maintaining cost competitiveness through sustainable production.

• Growth exploration includes alternative biomass products and other sustainability-related initiatives.

• A decarbonisation strategy and roadmap targeting Net Zero by 2050 is targeted for completion in 2024.