Sipef (SIP) Q4 2024 earnings summary

Executive summary

• Achieved total sales of USD 444 million (KUSD 443,810) in FY2024, with over 360,000 tons of CPO and 50,000 tons of bananas produced, supported by historically high palm oil prices and strong demand.

• Operations span Indonesia, Papua New Guinea, and Ivory Coast, with 100% RSPO, Rainforest Alliance, and Fairtrade certification for banana plantations.

• Net recurring result (share of group, after tax) was KUSD 71,913, with total net profit (share of group, after tax) at USD 70.2 million, impacted by a fair value adjustment from the sale of Melania.

• Focused on controlled growth, sustainability, and traceable, high-quality products, with ongoing diversification and empowerment initiatives.

• Operational cash flow reached KUSD 133,043, supporting significant investments and a proposed EUR 2.00 dividend per share.

Financial highlights

• Group turnover reached USD 444 million (KUSD 443,810) in FY2024.

• Net profit for the period was USD 70.2 million, down from USD 76.4 million in 2023, mainly due to a fair value adjustment from the sale of Melania.

• Operating result was USD 110.5 million (KUSD 104,105), slightly lower than the previous year.

• Free cash flow improved to USD 38.3 million (KUSD 38,295) from USD 5.8 million in 2023.

• Shareholders' equity rose to USD 898.4 million from USD 853.8 million at year-end 2023.

Outlook and guidance

• Palm oil production in 2025 expected to surpass 430,000 tons, a 15.7% increase year-over-year, with banana exports projected to exceed 59,000 tons.

• CAPEX for 2025 expected to exceed USD 100 million, with net financial debt managed in line with 2024.

• Favorable weather and market conditions anticipated to support a robust palm oil market in 2025.

• Recurrent result for 2025 expected to surpass that of 2024.