Golden Agri-Resources hit by $74.51m loss in Q3

Revenue from the oilseeds segment dropped 23.2% to $499.93m.

Golden Agri-Resources (GAR) succumbed to a loss of $74.51m (US$53.92m) in Q3, an announcement revealed. Its revenue also dipped 1% to $2.54b (US$1.84b).

In its financial statement, the firm revealed that its revenue from the oilseeds segment crashed 23.2% YoY in September YTD to $499.93m (US$361.76m) from $651.11b (US$471.17m). The firm believes that the commodity market in China will remain challenging in the near term.

Meanwhile, revenue from plantations & palm oil mills dropped 12.1% to $1.52b (US$1.1b) whilst inter-segment eliminations recorded a loss of $1.46b (US$1.05b).

Also read: Golden Agri hit by $53.6m Q2 loss amidst weaker palm oil prices

“We will continue to focus on enhancing integration and pushing higher value-added products in the downstream business to increase margins,” the firm said.

Despite this, GAR noted that fruit yield in Q3 sustained recovery as it rebounded 27% to 6.6 tonnes per hectare. They added that palm product output reached over 2.2 million tonnes in September YTD which is an 8% increase YoY.

Also read: Weak crude palm oil prices could hurt Golden Agri

“We support the [Indonesian] government’s biodiesel initiative and we believe that this could create additional demand to absorb any industry inventory,” GAR chairman and CEO Franky O. Widjaja said. “We are confident that the long-term demand fundamentals for palm oil remain robust as it is the most efficient and widely used vegetable oil.”