In This Article:
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Nine-month 2024 revenue grew by 8% year-on-year while EBITDA increased to US$758 million with a margin of 9.6%
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Downstream business growth mitigated the impact of lower production caused by El Niño conditions
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Underlying profit impacted by increased financial expenses and income tax
SINGAPORE, Nov. 14, 2024 /PRNewswire/ -- Golden Agri-Resources Ltd ("GAR" or the "Company") recorded an 8% growth in revenue for the nine months ending September 2024, reaching almost US$7.9 billion. Weaker plantation output caused by the ongoing effects of 2023's El Niño conditions was mitigated by slightly higher crude palm oil (CPO) prices and expanded sales volumes during this period.
EBITDA rose by 3% year-on-year to US$758 million, preserving a healthy margin of 9.6%. Meanwhile, underlying profit and net profit for the period decreased to US$279 million and US$220 million respectively. This was driven by increased financial expenses, in line with a higher interest rate environment, and greater income tax expenses attributed to several subsidiaries operating in higher income tax countries.
GAR's financial position remained strong with a low gearing ratio of 0.61 times and net debt to EBITDA of 0.53 times.
On the outlook, Mr Franky O. Widjaja, GAR Chairman and Chief Executive Officer, commented: "The impact of the El Niño phenomenon in the second half of 2023 on Indonesia's palm oil output this year is worse than initially estimated by the industry. Sunflower oil and rapeseed oil production have also been disrupted by some crop losses due to unfavourable weather conditions. The recent increase in production of soybean oil has alleviated the tightness in global rapeseed and sunflower oil supply, although prices remain elevated. The market anticipates a seasonally low production period for palm oil in the first half of next year, while Indonesia is planning for the implementation of an increased B40 biodiesel blending mandate."
Mr. Widjaja added: "Unpredictable weather conditions in key producing countries and escalating geopolitical tensions remain critical factors likely to support vegetable oil prices. Nevertheless, the possibility of demand rationing, especially in price-sensitive markets, amidst the current high prices is an important factor to monitor."
OPERATIONAL HIGHLIGHTS
As of 30 September 2024, GAR's planted area was almost 534,000 hectares, of which 486,000 hectares were mature. Nucleus and plasma estates made up 417,000 and 117,000 hectares of this area respectively.