Sipef (SIP) Q2 2026 earnings summary

Executive summary

• Total sales reached USD 570 million in FY2025, with over 440,000 tonnes of CPO and 52,000 tonnes of bananas produced.

• Strong operational momentum in H1 2026, with CPO production up 6.9% and banana production up 9.4% year-over-year, driven by maturing plantations in Indonesia and Papua New Guinea.

• Revenue rose 23% to USD 308 million, and recurring net result (share of the Group) increased to USD 64.1 million.

• Free cash flow reached USD 32.3 million, boosting net cash position to USD 124.5 million by end of June.

• 100% RSPO compliance and ongoing sustainability commitments, including community engagement and premium market targeting.

Financial highlights

• Gross margin for palm increased to USD 125.5 million (up USD 16.8 million year-over-year), and bananas to USD 5.7 million (up USD 1.7 million).

• Operating result rose to USD 99.0 million from USD 84.6 million year-over-year.

• Gross profit: USD 132 million, up 16.6% year-over-year.

• Profit for the period (recurring) was USD 67.0 million, up from USD 60.8 million; non-recurring profit was USD 62.9 million.

• Free cash flow for H1 2026 was USD 32.3 million, down from USD 38.5 million year-over-year.

Outlook and guidance

• Group palm oil production expected to reach 470,000 tonnes and bananas 55,000 tonnes for 2026.

• Recurring result for 2026 anticipated to exceed 2025's record, supported by higher production and favorable prices.

• High-price environment for vegetable oils anticipated to continue, with El Niño likely impacting Q4 2026 and 2027.

• 70% of projected palm oil volume sold at USD 1,007/tonne; PNG at 93% sold at USD 1,200/tonne.

• CAPEX for 2026 expected between USD 100–120 million, fully financed from operating cash flow.