Kencana Agri (BNE) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 12.7% to US$153.7m; net profit was US$11.9m versus a US$0.3m loss in FY2023.

• Higher CPO and PK prices and a US$5.9m fair-value gain on biological assets and other receivables supported results, partly offset by lower production and sales volumes.

Financial highlights

• Gross profit was US$43.3m, up 64.0%; operating profit was US$38.4m, up 261.2%; EBITDA was US$47.5m, up 38.0%.

• Profit before tax was US$22.7m versus a US$0.8m loss; profit after tax was US$11.9m versus a US$0.3m loss.

• CPO sales revenue rose 11.6% to US$136.0m; sales volume fell 0.7% to 173,323 MT and average selling price increased 12.5% to US$785/MT.

• PK average selling price increased to US$491/MT from US$345/MT; sales volume fell 4% to 33,833 MT.

Segment performance

• FFB production fell 12.2% to 680,478 MT; yield decreased to 11.5 MT/ha from 13.1 MT/ha.

• FFB processed declined 6.3% to 767,321 MT, while external-party processing increased 55.7% to 93,812 MT.

• CPO extraction rate improved 0.4pp to 21.3%, while CPO production declined 4.7% to 163,489 MT.

• Planted area, including plasma, increased by 1,039 ha to 67,885 ha; 56% was prime mature, 15% young mature, 9% immature and 20% old mature.