Kencana Agri (BNE) H1 2025 earnings summary

Executive summary

• 1H 2025 revenue rose 59.8% YoY to US$87.148m, driven by higher CPO and palm kernel prices and sales volumes; profit after tax reached US$9.782m vs US$0.568m.

• Gross margin improved to 32.4% from 26.3%; operating cash flow was US$24.565m, and borrowings declined by a net US$16.3m.

Financial highlights

• Gross profit rose 97.0% to US$28.211m, operating profit increased 77.9% to US$19.8m, and EBITDA more than doubled by 104.5% to US$29.9m.

• Profit before tax was US$13.132m vs US$2.213m; income tax expense was US$3.350m vs US$1.645m.

• Cost of sales increased 47% to US$58.937m, reflecting higher upkeep, harvesting, FFB dispatch and processing costs alongside increased output and sales.

• CPO sales volume rose 14.3% to 79,013 MT and revenue increased 48.7% to US$72.5m; CPO ASP climbed 30.1% to US$918/MT.

• Palm kernel ASP rose to US$752/MT from US$384/MT, while sales volume increased 36% to 18,715 MT.

Segment performance

• FFB production increased 29.3% to 394,131 MT; nucleus output rose 33.7% to 322,466 MT and plasma output increased 12.6% to 71,665 MT.

• FFB processed rose 39.0% to 448,088 MT; external-party throughput increased 173.8% to 56,997 MT.

• CPO production grew 32.4% to 93,981 MT despite the extraction rate falling to 21.0% from 22.0%; nucleus FFB yield rose 33.3% to 6.8 MT/ha.

• Planted area, including plasma, increased 82 ha to 67,967 ha; 298 ha of old mature plantations were cleared for replanting and 380 ha were replanted or newly planted.

• Four major customers generated US$69.051m of revenue, up from US$38.092m from three customers in 1H 2024.