Golden Agri’s net profit cut by half in 1H23
Its profit fell to US$182m.
Golden Agri-Resources (GAR) ended 1H23 with a 53% YoY lower net profit of US$182m.
In a bourse filing, the GAR attributed the fall to a decline in crude palm oil (CPO) market price which fell 40% YoY, averaging US$949 per tonne.
Apart from lower net profit, the company also recorded declines in its earnings before interest, taxes, depreciation, and amortisation (EBITDA) which fell 41% YoY to US$478m, and its underlying profit which dropped by 46% YoY to US$220m.
GAR, however, underscored that its integrated business model helped shield it from “the worst impacts of volatile industry conditions.”
“During the first half of 2023, the company’s downstream business continued to perform well, registering a substantial increase in sales volume which helped to partly mitigate weaker results from the plantation business that was directly impacted by the drop in market prices,” GAR said.