Indofood Agri Resources (5JS) H1 2024 earnings summary

Executive summary

• 1H24 revenue declined 7.3% to Rp7,053bn, while adjusted EBITDA rose 22% to Rp1,582bn and net profit increased to Rp631bn from Rp93bn.

• Profit growth reflected higher gross profit, biological-asset and FX gains, and lower finance costs; higher tax and JV losses partly offset gains.

Financial highlights

• Gross profit rose 27.2% to Rp1,568bn; gross margin expanded to 22.2% from 16.2%.

• Core profit after tax increased to Rp505bn from Rp172bn; profit attributable to owners was Rp298bn vs Rp89bn, and basic and diluted EPS was Rp213 vs Rp64.

• Profit from operations rose 130.8% to Rp1,079bn; profit before tax was Rp925bn vs Rp241bn.

• Cost of sales fell 14.0% to Rp5,485bn; total comprehensive income was Rp527bn vs Rp133bn.

• CPO sales volume declined 3% to 302,000 MT and PK products fell 16% to 70,000 MT; ASPs rose 4% to Rp11,897/kg for CPO and 14% to Rp6,309/kg for PK.

Segment performance

• Plantations revenue declined 1% to Rp4,653bn; adjusted EBITDA rose 38% to Rp1,272bn, with margin expanding to 27% from 20%.

• Plantation operating profit increased to Rp745bn from Rp222bn, supported by higher commodity prices, stable production costs and biological-asset gains.

• EOF revenue was Rp5,828bn, down 1%; adjusted EBITDA was flat at Rp410bn and margin remained 7%.

• Nucleus FFB production declined 1% to 1.20m MT and CPO production fell 1% to 306,000 MT; CPO extraction rate was stable at 20.6%.

• Mature oil palm area was 221,958 ha vs 220,002 ha; total FFB production was 1.591m MT vs 1.603m MT.