It was bolstered by improved performance from its palm, laurics, and other segments.
Golden Agri Resources’ Q1 profits soared 54.5% YoY to $25.07m (US$18.31m) from $16.23m (US$11.85m), an announcement revealed. Revenue on the other hand slipped 11% YoY from $2.49b (US$1.82b) to $2.22b (US$1.62b).
Better performance from its palm, laurics and other segment, as well as the gain from its disposal of a subsidiary in Indonesia, boosted profits during the quarter, whilst its weak revenue was blamed on lower palm oil market prices.
Also read: Golden Agri Resources lost US$1.77m in 2018
Its palm, laurics and other segment Q1 revenue reached $2.20b (US$1.61b), representing an 11% YoY decrease due to weaker selling prices that was partly compensated by higher sales volume of 2.7 million tonnes. Earnings before interest, tax, depreciation and amortisation (EBITDA) more than doubled to $80.79m (US$59m).
Meanwhile, its plantations and palm oil mills segment reported a YoY increase in production output during the quarter, with fruit yield and palm product output reaching 4.6 tonnes per ha and 629,000 tonnes, respectively. According to the firm, the production growth partly compensated the weakening crude palm oil (CPO) market prices during the quarter.
“To sustain production growth, Golden Agri is focusing on replanting older plantations with next-generation, higher yielding seeds,” the firm highlighted. It noted that in Q1, Golden Agri replanted 2,200 ha of old estates. It aims to replant 15,000 ha by end-2019.
CEO and chairman Franky O. Widjaja added that the firm expects to see more positive development on biodiesel demand as the realisation of the Indonesian biodiesel mandate during Q1 was on track.
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