Golden Agri-Resources earnings up 56.5% y-o-y to US$160.3 mil from increase in CPO market prices

The group’s growth in revenue was supported by a 19% increase in crude palm oil (CPO) market prices (FOB Belawan). Higher plantation output allowed GAR to capitalize on stronger CPO prices, while offsetting reduced sales volumes.

GAR’s yield intensification efforts, coupled with favourable weather conditions, contributed to
9% y-o-y growth in fresh fruit bunch (FFB) productivity, while palm product output also rose by 9% y-o-y to 1.3 million tonnes.

A combination of higher plantation output and appreciation in CPO prices translated to a strong
51% growth in ebitda for this segment to US$320 million, at a margin of 27%. GAR’s plantation and palm oil mills.

Meanwhile, the group’s downstream segments, which consists of processing and merchandising palm and oilseed-based products, saw a 2% y-o-y dip in sales volume to 5.6 million tonnes. Ebitda decreased by 13% to US$246 million, with a lower margin of 4% as a result of weaker refining margins.

See also: Fortress Minerals earnings decline to US$4.44 mil in 1HFY2026 from lower average realised selling price of iron ore

GAR’s gearing ratio and net debt to ebitda decreased to 0.61 times and 22 times respectively as at end June.

Shares in Golden Agri-Resources closed flat at 26.5 cents on Aug 14.