Golden Agri’s net profit surged to $645.5m in 2021

Upstream and downstream businesses contributed to Golden Agri’s stronger performance.

The net profit of SGX-listed Golden Agri-Resources, grew to $645.5m (US$476m) in the fiscal year of 2021 from $43.39m (US$32m) in 2020 on the back of the strong performance of its upstream and downstream businesses.

The Indonesia-based firm said that its earnings before interest, taxes, depreciation, and amortisation increased by 81% to $1.646b (US$1.214b) from $907m (US$669m), whilst  gross profit soared by 105% to $3.193b (US$2.355b) from $1.559b (US$1.150b) in the same period.

Its revenue was on an “all-time high” as it went up by 44% to $13.809b (US$10.183b) last year, driven by stronger crude palm oil (CPO) market prices.

Further, the agriculture company attributed its “stronger performance” to the contributions of both the upstream and downstream business which was due to sustained high palm oil market prices and robust margins from the downstream business.

Golden Agri Chairman and CEO Franky Widjaja pointed out that the company’s firm set of results in 2021 showed their resilience and competitive work of their employees amidst the tight edible oil supply.

“Moving forward, we expect the tight vegetable oil situation to persist. Palm oil, as a key contributor to meet the world’s demand for edible oils, is facing production challenges such as labour issues in Malaysia and under-fertilised smallholder plantations. Dry weather conditions in South America further strain global vegetable oil supply,” said Widjaja.

$1 = US$0.74