Blame it on weak CPO prices.
Flagging CPO prices have dragged Golden Agri-Resources (GAR) into the red, as the company posted a net loss of US$16.7m, or roughly $23.5m, in FY15.
According to OCBC, revenue tumbled 15% YoY to around US$6.5b, while core earnings were flat at US$221.4m.
For Q4, revenue dropped 15% YoY to around US$1.6b. In addition, a US$197.7m bio-asset fair value loss resulted in a wider net loss of US$88.4m, compared to its 4Q14’s net loss of US$21.9m. Core earnings would have climbed 13%, though, to US$51.5m.
In 2016, GAR is bracing for El Niño to hurt production, though the impact will likely be cushioned by an anticipated rebound in CPO prices.
GAR further asserts that it will continue to enhance margins through further vertical integration of its operations, as well as improving its yield and cost efficiencies.
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