Kencana Agri (BNE) H1 2024 earnings summary

Executive summary

• H1 2024 revenue fell 11.7% YoY to US$54.531m; gross margin rose to 26.3% from 16.1%, while profit after tax declined 69.6% to US$568k.

• A US$2.1m FX loss, mainly on USD-denominated loans, outweighed stronger gross profit and a US$1.786m biological-asset fair-value gain.

Financial highlights

• Gross profit increased 44.5% to US$14.317m as cost of sales fell 22% to US$40.214m.

• Operating profit rose 249.8% to US$11.148m; profit before tax was US$2.213m versus US$392k, while EBITDA declined 9.8% to US$14.644m.

• Total comprehensive loss was US$1.578m versus income of US$3.025m; EPS was 0.20 US cents versus 0.65 US cents.

Segment performance

• CPO sales volume rose 0.8% to 69,139 MT, but CPO revenue fell 10.8% to US$48.785m as ASP declined 11.6% to US$706/MT.

• Palm kernel ASP fell to US$384/MT from US$407/MT; sales volume rose 5% to 13,715 MT, and kernel revenue was US$5.270m, down 0.6%.

• FFB production fell 12.1% to 304,856 MT and processed volume fell 11.2% to 322,299 MT; CPO output declined 4.8% to 70,960 MT.

• CPO extraction rate improved 1.5pp to 22.0%; nucleus FFB yield fell 8.9% to 5.1 MT/ha.