Golden Agri's net profit slumps 57% to $78m in H1

Low palm prices took their toll.

Golden Agri-Resources reported a 57% slump in net profit for the first six months of the year, as strong second quarter performance failed to make up for its extremely poor Q1 numbers.

The group's attributable profit fell to $78m (US$56m) in the first half, dragged by low crude palm oil prices.

Golden Agri's Q2 performance provided some relief, with net profit up 125% to US$39m on back of plantation output growth and continued improvement in palm downstream operations.

“We are experiencing a low cycle period in palm oil prices. However, we are of the view that industry outlook remains positive for the longer term. Short-term catalysts to CPO price are expected to come from lower output resulting from the El Nino condition, and increased domestic demand with the implementation of biodiesel mandates and subsidy by the Indonesian government,” said Franky Widjaja, Chairman and Chief Executive Officer of GAR