Golden Agri Resources profits climbed 53.5% to $25.07m in Q1

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.

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia