Golden Agri-Resources (E5H) Q3 2024 TU earnings summary

Executive summary

• 9M 2024 revenue rose 8% YoY to US$7.9bn as higher sales volume and CPO prices offset lower plantation output.

• 9M EBITDA increased 3% YoY to US$758m; underlying profit and net profit fell 15% and 12%, respectively, amid higher financing and income tax expenses.

Financial highlights

• 9M revenue was US$7,899m, up 8% YoY; gross profit rose 3% to US$1,416m.

• 9M EBITDA increased 3% to US$758m, with a 9.6% margin; underlying profit declined 15% to US$279m.

• 9M net profit attributable to owners declined 12% YoY to US$220m.

• 3Q revenue rose 7% QoQ to US$2,757m; EBITDA was US$264m, while underlying profit fell 18% to US$91m.

• 3Q net profit increased 80% QoQ to US$118m, mainly reflecting a US$48m FX gain versus a US$26m loss in 2Q.

Outlook and guidance

• Peak crop season is expected to shift to 4Q 2024; production recovery continued in 3Q after the weaker first half.