In the 1QFY2023, sales revenue fell by 34.7% y-o-y to US$198.2 million while ebitda fell by 55.3% y-o-y to US$55.1 million. Overall sales volumes in 1QFY2023 were also impacted by a net inventory build-up of 19,000 tonnes and lower production volumes.
During the quarter, the volume of fresh fruit bunches (FFB) harvested fell by 2.8% y-o-y to 731,672 tonnes. FFB yield fell by 2.63% y-o-y to 3.7% while crude palm oil (CPO) production fell by 3.8% y-o-y to 185,263 tonnes in the quarter.
As at March 31, cash and bank balances stood at US$486.0 million, 10.38% higher y-o-y. Its gross gearing ratio stood at 0.19 times as at the same period.
Despite the moderation in prices, the group says the palm oil industry’s fundamentals remain supported by tight inventories in producing countries as well as continued domestic consumption demand from Indonesia’s B35 biodiesel mandate and Domestic Market Obligation (DMO) policy restricting the country’s palm oil export volumes.
See also: Keppel Pacific Oak US REIT’s 1QFY2025 distributable income falls by 19.3% y-o-y to US$9.6 mil
Shares in First Resources closed flat at $1.38 on May 11.
