Sipef (SIP) Q4 2025 earnings summary

Executive summary

• Achieved total sales of USD 570 million (KUSD 570,432) in FY2025, with over 440,000 tonnes of CPO and 52,000 tonnes of bananas produced.

• Record recurrent result (Group share) of KUSD 127,367 for 2025, up 77.1% year-over-year, driven by strong palm oil and banana production, maturing hectares, and favorable prices.

• Workforce exceeds 24,000 employees, with a young average plantation age of 9.8 years.

• 100% RSPO compliant and listed on Euronext.

• Net result (Group share) reached KUSD 125,449; board proposes a 115% higher dividend (EUR 4.30/share) with a new 40% payout ratio.

Financial highlights

• Gross margin rose to USD 249.5 million (KUSD 250,971) in 2025, up from USD 157.6 million in 2024, driven by palm oil.

• Operating result increased to USD 189.7 million (KUSD 187,689) from USD 110.5 million (KUSD 104,105) year-over-year.

• Profit for the period (non-recurring) reached USD 132.2 million, up from USD 70.2 million.

• Free cash flow improved to USD 130.1 million (KUSD 130,086), supporting expansion and sustainability projects.

• Shareholders' equity rose to USD 1,001.6 million at year-end 2025.

Outlook and guidance

• 2026 palm oil production expected to reach 470,000 tonnes, with Indonesia at 325,000 tonnes and PNG at 145,000 tonnes.

• Banana production forecasted at 55,000 tonnes.

• 29% of 2026 palm oil production already sold at an average price of USD 1,012/tonne; banana sales secured via annual fixed-price contracts.

• CAPEX planned between USD 100–120 million, with net financial position to remain stable.

• Positive outlook supported by robust demand, stable input costs, and ongoing expansion in South Sumatra.